Question:

1) As an incentive for customers to purchase a large number of items at one time, a business may offer its customers

A)a sales discount.

B) free delivery.

C) a sales allowance.

D) a quantity discount.

2)The operating cycle of a merchandising company differs from that of a service company in all of the following except that it:

A) is usually shorter in days.

B)is usually longer in days.

C) involves the sale of merchandise.

D)involves the purchase of inventory.

3)An expense is recognized when there is an increase in assets or a decrease in liabilities from consuming a service or asset in the companys business activities with its customers.

A)True

B)False

4)Closing entries are journalized in the

A)chart of accounts.

B)trial balance.

C)general journal.

D)general ledger.