1 Measuring net income for a merchandiser is conceptually the same as for a service company. 2 For a merchandiser, sales less operating expenses is called gross profit 3. For a merchandiser, the primary source of revenues is the sale of inventory 4 Sales salaries and wages is an example of an operating expense. 5 The operating cycle of a merchandiser is the same as that of a service company. 6. In a perpetual inventory system, no detailed inventory records of goods on hand are maintained. 7. In a periodic inventory system, the cost of goods sold is determined only at the end of the accounting period. 8 A periodic inventory system provides better control over inventories than a perpetual system. 1 Measuring net income for a merchandiser is conceptually the same as for a service company. 2 For a merchandiser, sales less operating expenses is called gross profit 3. For a merchandiser, the primary source of revenues is the sale of inventory 4 Sales salaries and wages is an example of an operating expense. 5 The operating cycle of a merchandiser is the same as that of a service company. 6. In a perpetual inventory system, no detailed inventory records of goods on hand are maintained. 7. In a periodic inventory system, the cost of goods sold is determined only at the end of the accounting period. 8 A periodic inventory system provides better control over inventories than a perpetual system