Answer T or F

The ending merchandise inventory for $2005$ is the as the beginning merchandise inventory or $2006.\_\_\_\_\_\_\_$

In a multi$-$step income statement the dollar amount for income from operations is always the same as net income.$\_\_\_\_\_\_$

Net sales are equal to sales minus cost of merchandise sold.$\_\_\_\_\_\_\_\_\_$

Gross profit minus selling expenses equals net income.$\_\_\_\_\_\_\_\_$

The form on the balance sheet in which asserts, liabilities, and owners equity are presented in a downward sequence is called the report form.$\_\_\_\_\_\_\_\_$

On the income statement in the single$-$step form, the total of all expenses is deducted from the total of all revenues.$\_\_\_\_\_\_\_\_$

The single$-$step income statement is easier to prepare, but a criticism of this format is that gross profit and income from operations are nor readily available.$\_\_\_\_\_\_\_\_\_$

Income that cannot be associated definitely with operations, such as gains from the sale of a fixed asset, is listed as Other Income on the multi$-$step income statement.$\_\_\_\_\_\_\_\_\_\_$Under the perpetual inventory system, when a sale is made, both the retail and cost values are recorded.$\_\_\_\_\_\_\_\_\_\_\_$

Under perpetual inventory system, the cost of merchandise sold is recorded when sales are made.$\_\_\_\_\_\_\_$

If payment is due by the end of the month in which sale is made, the invoice terms are expressed as n$/30.\_\_\_\_\_\_\_\_\_$

When merchandise that was sold is returned, a credit to sales returns and allowances is made.$\_\_\_\_\_\_\_\_$

In perpetual inventory system, when merchandise is returned to the seller, Cost of Merchandise Sold is one to the accounts debited to record the transaction.$\_\_\_\_\_\_\_\_\_\_$

Sales return is a contra$-$revenue account.$\_\_\_\_\_\_\_\_$

Sales Discounts is a revenue account with a credit balance.$\_\_\_\_\_\_\_\_$

Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as credit sales.$\_\_\_\_\_\_\_\_$

Sales to customers who use nonbank credit cards, such as American Express, are generally treated as credit sales.$\_\_\_\_\_\_\_\_$

Retailers record all credit card sales as charge sales.$\_\_\_\_\_\_\_$

The service fee that credit card companies charge retailers varies and is the primary reason why some businesses do not accept all credit cards.$\_\_\_\_\_\_\_\_\_$

The document issued by the seller that informs the buyer of the details of sales returns is called a credit memorandum.$\_\_\_\_\_\_\_\_$

A seller may grant a buyer a reduction in selling price and this is called a sales allowance.$\_\_\_\_\_\_\_\_$

The effect of a sales return and allowance is a reduction in sales revenue and a decrease in cash or accounts receivable.$\_\_\_\_\_\_\_\_$Merchandise Inventory normally has a debit balance.$\_\_\_\_\_\_\_\_\_$

A buyer who acquires merchandise under credit terms of $1/10,$ n$/30$ has $30$ days after the invoice date to take advantage of the cash discount.$\_\_\_\_\_\_\_\_\_\_$

Discounts taken by the buyer for early payment of an invoice are called Cash Discounts by the buyer.$\_\_\_\_\_\_\_\_\_\_$