71. Closing entries for a merchandising business are similar to those for a service business.
72. The ratio of net sales to assets measures how effectively a business is using its assets to generate sales.
73. The accounts Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight In are found on the balance sheet.
74. Under the periodic inventory system, freight charges paid when purchasing merchandise FOB shipping point are debited to Transportation In, Freight In, or a similarly titled account.
75. The closing entries differ in the periodic inventory system in that there is no cost of merchandise sold account to be closed to Income Summary.
76. Which one of the following is not a difference between a retail business and a service business?
A. in what is sold
B. the inclusion of gross profit in the income statement
C. accounting equation
D. merchandise inventory included in the balance sheet
77. Net income plus operating expenses is equal to
A. cost of merchandise sold
B. cost of merchandise available for sale
C. net sales
D. gross profit
78. Generally, the revenue account for a merchandising business is entitled
A. Sales
B. Net Sales
C. Gross Sales
D. Gross Profit
79. What is the term applied to the excess of net revenue from sales over the cost of merchandise sold?
A. gross profit
B. income from operations
C. net income
D. gross sales
80. The term "inventory" indicates
A. merchandise held for sale in the normal course of business
B. materials in the process of production or held for production
C. supplies
D. both (a) and (b)