Net income plus operating expenses is equal to a. cost of merchandise sold b. cost of merchandise available for sale c. sales d. gross profit 1. 2. What is the term applied to the excess of net revenue from sales over the cost of merchandise sold? a. gross profit b. income from operations c. net income d. gross sales 3. Caleulate income from operations for Jonas Company based on the following data $764,000 52.5 538,000 ales Cost of merchandise sold a. $485,500 b. $711,500 c. $173,500 d. $226,000 Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. The Pound Co. paid the invoice within the discount period. What is amount of sales from the above transactions? a. $25,500 b. $26,010 c. $24,990 d. $16,000 4. The primary difference between a periodic and perpetual inventory system is that a a. periodic system determines the inventory on hand only at the end of the accounting 5. period b. periodic system keeps a record showing the inventory on hand at all times c. periodic system provides an easy means to determine inventory shrinkage d. periodic system records the cost of the sale on the date the sale is made A sales invoice included the following information: merchandise price, $12,000; terms 1/10, n/eom, FOB shipping point with prepaid freight of $900 added to the invoice. Assuming that a credit for merchandise returned of $500 is granted prior to payment 6