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Mr. Etemadi has prepared the following list of statements about service companies and merchandisers. Identify each statement as true or false. If false, indicate how to correct the statement?1. Measuring net income for a merchandiser is conceptually the same as for a service company. A. True B. False2. For a merchandiser, sales less operating expenses is called gross profit. A. True B. False3. For a merchandiser, the primary source of revenues is the sale of inventory. A. True B. False4. Sales salaries and wages is an example of an operating expense. A. True B. False 5. The operating cycle of a merchandiser is the same as that of a service companies. A. True B. False6. In a perpetual inventory system, no detailed inventory records of goods on hand are maintained. the accounting period. A. True B. False7. In a periodic inventory system, the cost of goods sold is determined only at the end of the accountng perod. A. True B. False8. A periodic inventory system provides better control over inventories than a perpetual Instructions. A. True B. False
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Mr. Etemadi has prepared the following list of statements about service companies and merchandisers....
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