1. What items appear in financial statements of merchandising companies but not in the statements of service companies? 2. In comparing the accounts of a merchandising company with those of a service company, what additional accounts would the merchandisin company likely use, assuming it employs a perpetual inventory system? 3. Explain how a business can earn a positive gross profit on its sales and still have a net loss. 4. Why do companies offer a cash discount? 5. How does a company that uses a perpetual inventory system determine the amount of inventory shrinkage? 6. What is the difference between a sales discount and a purchases discount? 7. What is the difference between the single-step and multiple-step income statement formats? 8. Buyers negotiate purchase contracts with suppliers. What type of shipping terms should a buyer attempt to negotiate to minimize transportation costs