Explain how a business can earn a positive gross profit

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Reference no: EM131532952

Question: 1. In comparing the accounts of a merchandising company with those of a service company, what additional accounts would the merchandising company likely use, assuming it employs a perpetual inventory system?

2. What items appear in financial statements of merch andising companies but not in the statements of service companies?

3. Explain how a business can earn a positive gross profit on its sales and still have a net loss.

4. How is cost of goods sold computed under a periodic inventory system?

Reference no: EM131532952

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