Chapter 5: Accounting for Merchandising Operations. 1. What is the primary source of revenue for merchandising companies? 2. What are the two categonies of expenses: and 3. Define cost of Goods Sold. 4. Define operating expenses. 5. What is the difference between sales revenue and cost of goods sold? 6. Explain the income measurement process for a merchandising company. 7. Explain the fiow of costs for a merchandising company. 8. Explain the difference between a perpetual and period system