Which of the following companies would be most likely to use a perpetual inventory system?
1. Merchandising businesses that sell to retailers are known as:
d. service firms.
2. Which of the following companies would be most likely to use a perpetual inventory system?
a. grain company
c. clothing store
d. jewellery dealer
3. A merchandiser that sells directly to consumers is a:
d. service enterprise.
4. Two categories of expenses in all merchandising companies are:
a. cost of goods sold and financing expenses
b. operating expenses and sales
c. cost of goods sold and operating expenses
d. sales and cost of goods sold.
5. The primary source of revenue for a wholesaler is:
a. investment income
b. service revenue
c. the sale of merchandise
d. the sale of plant assets the company owns.