17. Which of the following credit terms is the most advantageous to the purchaser of merchandise?

a. 1/10, n30.

b. 4/40, n120.

c. 2/10, n30.

d. 2/5, n15.

18. Which of the following is always included in the current assets section of the classified balance sheet of a merchandiser?

a. Cash

b. Trade Accounts Receivable

c. Prepaid Rent

d. All of the above

19. Which of the following is not one of the transactions that comprise the operating cycle of a merchandiser?

a. purchase inventory

b. pay for store labor

c. pay for inventory

d. sale inventory to customers

20. Which of the intermediate levels of income is not reported by a service type company?

a. gross profit

b. income before income taxes

c. income from operations

d. net income