1.The operating cycle of a manufacturer is longer and more complex than the operating cycle of a merchandiser.

Select one:

True

False

2.The income statement shows cost of goods sold separately from other expenses.

Select one:

True

False

3.Inventory shrinkage is unrecorded decreases in inventory due to breakage, shoplifting, and theft.

Select one:

True

False

4. Sales returns and allowances is an expense account and reduces net income.

Select one:

True

False

5.Which of the following businesses is likely to have the longest operating cycle?

Select one:

A. A food store.

B. A department store.

C. An art studio.

D. A car plant.