1.

Which of the following would not be considered a merchandising company?

A.

Wholesaler

B.

Dot Com firm

C.

Service firm

D.

Retailer

2.

Income from operations will always result if

	A.	revenues exceed cost of goods sold.
	B.	gross profit exceeds operating expenses.
	C.	the cost of goods sold exceeds operating expenses.
	D.	revenues exceed operating expenses.

3.

Financial information is presented below:

Operating Expenses	$ 45,000
Sales Returns and Allowances	13,000
Sales Discounts	6,000
Sales	150,000
Cost of Goods Sold	79,000

Gross profit would be

	A.	$58,000.
	B.	$65,000.
	C.	$52,000.
	D.	$71,000.