1. Which of the following is the primary source of revenue for a merchandising business?

a. the purchase and resale of finished products

b. providing intangilble goods and services

c. the production of products from raw materials

d. the sale of raw materials to manufacturing firms

2. Which of the following represents the components of the income statement for a service business?

a. Service Revenue - Operating Expenses = operating income

b. Sales Revenue - Cost of Goods Manufactured = gross profit

c. Sales Revenue - Cost of Goods Sold = gross profit

d. Service Revenue - Cost of Goods Purchased = gross profit

3. Which of the following represents the components of the income statement for a merchandising business?

a. Service Revenue - Cost of Goods Purchased = gross profit

b. Sales Revenue - Cost of Goods Sold = gross profit

c. Service Revenue - Operating Expenses = gross profit

d. Sales Revenue - Cost of Goods Manufactured = gross profit