Part \#2-Multiple Choice (18 marks) 30 minutes 1. A merchandising company A. Earns profit from buying and selling merchandise B. Buys products from manufacturers and sells to retaller C. Buys products from manufacturers and sells them to consumers D. Reports cost of goods sold on the income statement E. All of the above 2. Merchandisers A. Earn profit from buying and selling merchandise 8. Recelve fees in exchange for services C. Earn profit from commissions D. Earn profit from tare E. Do not report gross profit 3. Wholesalers A. Buy products from manufacturers and sell to retaller B. Huy products from other wholesalers and sell to consumers C. Buy products from manutacturers and sell to consumers D. Buy products from retailers and sell to consumens E. All of the above 4. hetailers A. Buy products from manufacturers and sell to wholesalers B. Buy products from wholesalers and sell to other wholesalers C. Avy products from manutacturers and wholesalers and sell to consumers D. Buy only from wholesalers E. All of the above 5. Gros profit is A. The same as profit B. Subtracted from operating income to get protit C. Net sales less cost of goods sold D. A special general ledger account E. Only cakulated when using the perpetual inventory system 6. 2-Mart had sales of $500,100. Cort of goods sold was $143,400. What is the gross profit? A. 5216,600 B. $217,100 C. 5356,700 D. 5503,900 E. $213,300