Ch4-CI 42 Cost of goods sold sales B) Is the term used for the cost of buying C) Is another term for revenue. D) Is also called gross margin E) Is a term only used by service firms. Learning Obiective: Ch4-Ci A company had sales of $375,000 A) S(217,000). B) $ 375,000. C) $ 157,500. D) $217,500. and its gross profit was $157,500. Its cost of goods sold equals: gross protit 43. E) $ 532,500. tive: Ch4-C2 44. Merchandise inventory: A) B) Refers Is reported on the balance sheet as a current asset. to products a company owns and intends to sell. Can include the cost of shipping the goods to the store and making them ready for sale. D) Does not appear on the balance sheet of a service company E) All of the above. Learming Obiective: Ch4-C2 The operating cycle of a merchandising company: A) Begins with the purchase of merchandise. B) Ends with the collection of cash from the sale of merchandise. 45. C) Can vary in length among different merchandising companies D) Sometimes involves accounts receivable. E) All of the above. Ch4-C2 46. The operating cycle for a merchandiser that sells only for cash moves from: Purchases of merchandise to inventory to cash sales. A) B) Purchases of merchandise to inventory to accounts receivable to cash sales. C) Inventory to purchases of merchandise to cash sales D) Accounts receivable to purchases of merchandise to inventory to cash sales. E) Accounts receivable to inventory to cash sales. : Ch4-C4 47. The current period's ending inventory is A) The next period's beginning inventory. B) The current period's cost of goods sold. C) The prior period's beginning inventory. The current period's net purchases. D) E) The current period's beginning inventory. : Ch4-Al 48. The quick assets are defined as: A) Cash, short-term invstments, and inventory Cash, short-term investments, and current receivables. B) C) Cash, inventory, and current receivables D) Cash, noncurrent receivables, and prepaid expenses E) Accounts receivable, inventory, and prepaid expenses. Leaming Obiective: Ch4-C4 49. Beginning inventory plus net cost of purchases is: A) B) Cost of goods sold. Merchandise available for sale