1. (a) "The steps in the accounting cycle for a merchan- dising company are different from the accounting cycle for a service company." Do you agree or disagree? (b) Is the measurement of net income for a merchan- dising company conceptually the same as for a service company? Explain. 2. Why is the normal operating cycle for a merchandising company likely to be longer than for a service company? 3. (a) How do the components of revenues and expenses differ between merchandising and service companies? (b) Explain the income measurement process in a merchandising company. 4. How does income measurement differ between a merchandising and a service company? 5. When is cost of goods sold determined in a perpetual inventory system? 6. Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will result