6 expenses is deducted from the total of all revenues is called a, multiple-step statement b, revenue statement The foren of income slaten,ent that derives "a name from the that the u sal." total of e, operating income statement d. single-step statement 7. What is the term applied fppto the excess of sales over the cost of ennle wikd a. gross profit b. operations c, net income d. gross sales tu 8. Inventory shrinkage is recorded when a. merchandise is returned by a buyer b. merchandise purchased from a seller is incomplete or shor e. merchandise is returned to a seller d. there is a difference between a physical count of inventory and inventory records 9. Taking a physical count of inventory a. is not necessary when a periodic inventory system is used b. should be done near year-end c. has no internal control relevance d. is not necessary when a perpetual inventory system is used 10. Where are selling and administrative expenses found on the multiple-step income statement? a. before gross profit b. after sales and before gross profit c. after net income and before expenses d. after gross profit 11. Who is responsible for the freight costs when the terms are FOB shipping point? a. the ultimate customer b. the buyer c. the seller d. either the seller or the buyer Under a periodic inventory system a. accounting records continuously disclose the amount of inventory b. a separate account for each type of merchandise is maintained in a subsidiary ledger c. a physical inventory is taken at the end of the period d. inventory is debited when goods are returned to vendors 12