please answer following questions below:

2. Knowledge Check 01

Which of the following is included in the operating cycle of a merchandising company? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

• Buy inventory
• Collect cash
• Make inventory
• Pay operating expenses
• Sell services

18.

Knowledge Check 01

Which of the following statements regarding sales discounts are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

• Companies can choose between the gross method and the net method to account for sales discounts.
• If Geneva Company sells office supplies on account to a local business for $2,000 with payment terms of 2/30, n/60, the companys Sales Revenue of $2,000 will be reduced by a $40 Sales Discount if the discount is taken.
• Merchandisers can entice their customers to pay promptly for sales on account by offering a sales discount.
• Terms of 3/10, n/30 mean that if the purchaser pays by the 30th day of taking ownership of the goods, a 3% purchase discount can be deducted from the amount owed.

20.

Knowledge Check 01

Which of the following statements regarding sales of bundled items are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply

• Many businesses package several items into a bundle and sell the bundle at a single price.
• Revenue is recognized when the final performance obligation included in a sale of bundled items is satisfied.
• The transaction price must be allocated to the various performance obligations based on the stand-alone selling prices of the product(s) and service(s).
• When a bundle includes only products, the seller fulfills its performance obligations at the delivery of the product bundle.