81. 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
82. The term "inventory" can indicate
A. merchandise held for sale in the normal course of business
B. equipment used to manufacture products
C. supplies
D. any asset
83. A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year, $3,600; Freight-In, $650; Purchases, $10,700; Purchases Returns and Allowances, $1,950; Purchases Discounts, $330. The cost of merchandise purchased is equal to
A. $12,670
B. $9,070
C. $8,420
D. $17,230
84. A company, using the periodic inventory system, has merchandise inventory costing $175 on hand at the beginning of the period. During the period, merchandise costing $635 is purchased. At year-end, merchandise inventory costing $160 is on hand. The cost of merchandise sold for the year is
A. $970
B. $650
C. $300
D. $620
85. Expenses that are incurred directly or entirely in connection with the sale of merchandise are classified as
A. selling expenses
B. general expenses
C. other expenses
D. administrative expenses
86. Office salaries, depreciation of office equipment, and office supplies are examples of what type of expense?
A. selling expense
B. miscellaneous expense
C. administrative expense
D. other expense
87. The form of income statement that derives its name from the fact that the total of all expenses is deducted from the total of all revenues is called a
A. multiple-step statement
B. revenue statement
C. report-form statement
D. single-step statement
88. Multiple-step income statements show
A. gross profit but not income from operations
B. neither gross profit nor income from operations
C. both gross profit and income from operations
D. income from operations but not gross profit
89. When the three sections of a balance sheet are presented on a page in a downward sequence, it is called the
A. account form
B. comparative form
C. horizontal form
D. report form
90. The retained earnings statement shows
A. net income, dividends, and beginning and ending retained earnings
B. total assets and beginning and ending retained earnings
C. net income and ending retained earnings only
D. the changes in all stockholders’ equity accounts during the period