FABM 1

عدد الخيارات في هذه العجلة: 9

• T/F The steps in the accounting cycle are different for a merchandising company than for a service company.
• T/F Sales minus operating expenses equals gross profit.
• T/F Sales revenues are earned during the period cash is collected from the buyer.
• T/F The Sales Returns and Allowances account and the Sales Discount account are both classified as expense accounts.
• T/F The revenue recognition principle applies to merchandisers by recognizing sales revenues when they are earned.
• T/F To grant a customer a sales return, the seller credits Sales Returns and Allowances.
• T/F Merchandise inventory is classified as a current asset in a classified balance sheet.
• T/F If net sales are P800,000 and cost of goods sold is P600,000, the gross profit rate is 25%.
• T/F Gross profit represents the merchandising profit of a company.