Mr$.$ Etemadi has prepared the following list of statements about service companies and merchandisers.

Identify each statement as true or false.

Measuring net income for a merchandiser is conceptually the same as for a service company.

For a merchandiser, sales less operating expenses is called gross profit.

For a merchandiser, the primary source of revenues is the sale of inventory.

Sales salaries and wages is an example of an operating expense.

The operating cycle of a merchandiser is the same as that of a service company.

In a perpetual inventory system, no detailed inventory records of goods on hand are maintained.

In a periodic inventory system, the cost of goods sold is determined only at the end of the accounting period.

A periodic inventory system provides better control over inventories than a perpetual system.