Reference no: EM132728345

Problem 1: The operating cycle of a merchandiser begins when the company purchases inventory from an individual or business, called a vendor. Which statements are FALSE regarding merchandisers?

Group of answer choices

Option 1: Net Sales revenue is the same as gross profit for a service company.

Option 2: Cost of goods sold is not the same as Cost of sales to a merchandiser because COGS isn't their only expense.

Option 3: A merchandising company reports revenue using Net Sales revenue instead of Service Revenue.

Option 4: Merchandising inventory systems use Periodic inventory systems and Perpetual inventory systems.

Option 5: A merchandise inventory account is used for goods purchased for supplies, equipment, and goods intended to resell to customers.