QUESTION 37

1. In credit terms of 3/15, n/45, the "3" represents the

   		number of days in the discount period
   		full amount of the invoice
   		number of days when the entire amount is due
   		percent of the cash discount

5 points

QUESTION 38

1. If the seller is to pay the freight costs of delivering merchandise, the delivery terms are stated as

   		FOB shipping point
   		FOB destination
   		FOB n/30
   		FOB seller

5 points

QUESTION 39

1. Multiple-step income statements show

   		gross profit but not income from operations
   		neither gross profit nor income from operations
   		both gross profit and income from operations
   		income from operations but not gross profit

5 points

QUESTION 40

1. A company, using the periodic inventory system, has merchandise inventory costing $175 on hand at the beginning of the period. During the period, merchandise costing $635 is purchased. At year-end, merchandise inventory costing $160 is on hand. The cost of merchandise sold for the year is

   		$970
   		$650
   		$300
   		$620