10. A merchandiser A. Earns profit from commissions only B. Earns net income by buying and selling merchandise. C. Buys products from consumers. D. Receives fees only in exchange for services E. Earns profit from fares only 11. Damaged and obsolete goods that can be sold: A. Should be disposed of immediately. B. Are assigned a value of zero. C. Are included in inventory at their full cost D. Are never counted as inventory E. Are included in inventory at their net realizable value. 12. Merchandise inventory A. Is classified with investments on the balance sheet. B. Is a current asset C. Includes supplies the company will use in future periods. D. Is a long-term asset. E. Must be sold within one month 13. The recurring steps performed each reporting period in preparing financial statements, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance. A. Operating cycle. B. Natural business year. C. Accounting cycle. D. Accounting period. E. Closing cycle 14. Another name for a temporary account is a(n): A. Nominal account. B. Accrued account. C. Balance column account. D. Real account. E. Contra account. Revenues, expenses, and dividend accounts, which are closed at the end of each accounting period are: A. Balance sheet accounts B. Temporary accounts. C. Real accounts. D. Permanent accounts. 15. E. Closing accounts