1. Sales revenue less cost of goods sold is called a. gross profit. b. net profit. C. net income. d. marginal income. 2. Preston Company sells Logan Company merchandise on account, terms 1/12, n/35. What do the terms 1/12, n/35 mean? 3. Items waiting to be used in production are considered to be raw materials. a. b. c. finished goods. d. merchandise inventory. work in progress. 4. If goods in transit are shipped FOB destination, they belong to ___________ during transit: a. The buyer b. The seller 5. Which of the following is NOT part of the fraud triangle? a. financial pressure. b. incompatible duties. c. opportunity. d. rationalization.

1. Sales revenue less cost of goods sold is called a. gross profit. b. net profit. c. net income. d. marginal income. 2. Preston Company sells Logan Company merchandise on account, terms 1/12,n/35. What do the terms 1/12,n/35 mean? 3. Items waiting to be used in production are considered to be a. raw materials. b. work in progress. c. finished goods. d. merchandise inventory. 4. If goods in transit are shipped FOB destination, they belong to during transit: a. The buyer b. The seller 5. Which of the following is NOT part of the fraud triangle? a. financial pressure. b. incompatible duties. c. opportunity. d. rationalization