Question Details

The primary source of revenue for a wholesaler 


1. The primary source of revenue for a wholesaler is
a. investment income.
b. service fees.
c. the sale of merchandise.
d. the sale of fixed assets the company owns.
2. Sales revenue less cost of goods sold is called
a. gross profit.
b. net profit.
c. net income.
d. marginal income.
3. After gross profit is calculated, operating expenses are deducted to determine
a. gross margin.
b. net income.
c. gross profit on sales.
d. net margin.
4. Cost of goods sold is determined only at the end of the accounting period in
a. a perpetual inventory system.
b. a periodic inventory system.
c. both a perpetual and a periodic inventory system.
d. neither a perpetual nor a periodic inventory system.
5. Which of the following expressions is incorrect?
a. Gross profit - operating expenses = net income
b. Sales - cost of goods sold - operating expenses = net income
c. Net income + operating expenses = gross profit
d. Operating expenses - cost of goods sold = gross profit



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