What is a difference between merchandising companies

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Intermediate Financial Management
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Chapter 21 / Exercise 21-9
Intermediate Financial Management
Brigham/Daves
Expert Verified
81.What is a difference between merchandising companies and service enterprises?a.Merchandising companies must prepare multiple-step income statements and service enterprises must prepare single-step income statements. b.Merchandising companies generally have a longer operating cycle than service enterprises.c.Cost of goods sold is an expense for service enterprises but not for merchandising companies.d.All are differences.Ans: B, SO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting
82.Which statement is incorrect?
83.Under a perpetual inventory system, acquisition of merchandise for resale is debited to
84.The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Intermediate Financial Management
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Chapter 21 / Exercise 21-9
Intermediate Financial Management
Brigham/Daves
Expert Verified
Merchandising Operations85.Which of the following items does not result in an adjustment in the merchandise inventory account under a perpetual system?a.A purchase of merchandise.b.A return of merchandise inventory to the supplierc.Payment of freight costs for goods shipped to a customerd.Payment of freight costs for goods received from a supplierAns: C, SO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA: FSA

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