157.Explain the way in which costs flow through the merchandise inventory account to a merchandiser's income statement. 158.What is the acid-test ratio? How does it measure a company's...

157.Explain the way in which costs flow through the merchandise inventory account to a merchandiser's income statement.

158.What is the acid-test ratio? How does it measure a company's liquidity?

159.What is gross margin ratio? How is it used as an indicator of profitability?

160.What does the acronym FOB stand for? Describe the differences between FOB shipping point (or FOB factory) and FOB destination.