Reference no: EM132772968

Problem 1) The term "inventory," for a merchandiser, refers to:

A) raw materials that are used for production.

B) equipment that are used in production process.

C) the cost of goods sold.

D) goods held for sale to customers.

Problem 2) An entity that buys goods and sells them to customers at a markup is a:

A) merchandiser.

B) service provider.

C) manufacturer.

D) producer.

Problem 3) Gross profit is calculated as the difference between net sales revenue and:

A) purchases.

B) cost of goods sold.

C) cost of merchandise inventory.

D) selling and administrative expenses