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