Answer True or False in each questions $.$

Gross profit minus selling expenses equals net income

The form on the balance sheet in which asserts, liabilities, and owner's equity are presented in a

downward sequence is called the report

On the income statement i 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 availahle $=$

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

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

If payment is due by the end of the month in which sale is made, the invoice terms are expressed as

$\frac{n}{{30}_{{?}_{?}}}$

When merchandise that was sold is returned, a credit to sales returns and allowances is

$m_{{?}_{?}}$

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 halance

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 $!$

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

Merchandise Inventory normally has a debit balance

A buyer who acquires merchandise under credit terms of $\frac{1}{10},\frac{n}{30}$ 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