1. Which of the following would not be considered a merchandising company? Whole
ID: 2341670 • Letter: 1
Question
1.
Which of the following would not be considered a merchandising company?
Wholesaler
Dot Com firm
Service firm
Retailer
2.
Income from operations will always result if
revenues exceed cost of goods sold.
gross profit exceeds operating expenses.
the cost of goods sold exceeds operating expenses.
revenues exceed operating expenses.
3.
Financial information is presented below:
Operating Expenses
$ 45,000
Sales Returns and Allowances
13,000
Sales Discounts
6,000
Sales
150,000
Cost of Goods Sold
79,000
Gross profit would be
$58,000.
$65,000.
$52,000.
$71,000.
A.Wholesaler
B.Dot Com firm
C.Service firm
D.Retailer
2.
Income from operations will always result if
A.revenues exceed cost of goods sold.
B.gross profit exceeds operating expenses.
C.the cost of goods sold exceeds operating expenses.
D.revenues exceed operating expenses.
3.
Financial information is presented below:
Operating Expenses
$ 45,000
Sales Returns and Allowances
13,000
Sales Discounts
6,000
Sales
150,000
Cost of Goods Sold
79,000
Gross profit would be
$58,000.
B.$65,000.
C.$52,000.
D.$71,000.
Explanation / Answer
1. (C) Service firm. because mercahndise company are those company that deal with products.
2. (B) GP exceeds operating expenes.
3. (D) 71000
Gross profit = Sales-COGS
150000-79000
=71000
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