ACC 122-Spring 19 d sales and cost of goods sold. 17) The primary source of revenue for a wholesaler is a. investment income b. service c the sale of merchandise. d. the sale of plant assets the company owns 18) Sales revenue less cost of goods sold is called a. gross profit b. net profit. c net income. d. marginal income 19) After gross profit is calculated, operating expenses are deducted to determine a. gross margin b. net income c gross profit on sales d. net margin. 20) Which of the following expressions is incorreet? a. Gross profit operating expenses- net income b. Sales- cost of goods sold- operating expenses- net income c. Net income+ operating expenses- gross profit d. Operating expenses-cost of goods sold - gross proft 21) In a perpetual inventory system, cost of goods sold is recorded a. on a daily basis. b. on a monthly basis. c. on an annual basis. d. each time a sale occurs. 22) Under the perpetual inventory system, which of the following accounts would not be used? a. Sales b. Purchases c. Cost of Goods Sold Merchandise Inventory 23) What is a difference between merchandising companies and service enterprises? a. Merchandising companies must prepare multiple-step income statements and service enterprises must prepare single-step income statements b. Merchandising companies generally have a longer operating cycle than service enterprises c. Cost of goods sold is an expense for service enterprises but not for merchandising companies. d. All are differences