Review Chapter58 Multiple Choice I. Which one ofthe following is not a difference between aresail business and a service business? in what is sold b, the inclusion of gross profit in the income statement accounting equation d. mi erchandise inventory included in the balance sheet 2. Net income plus operating expenses is equal to cosa of merchardi b, cost of merchandise available for sale net sales d. gross prot 3. Generally, the revenue account merchandising business is entitled a Sales Net Sales Gross sales d. Gross Profit What lhe term applied to the eweess of net revenue from sales over the oost of merchandise sold? a gross profit b, income from operations net income d gross sales 5. The term "inventory" can indicate merchandise held for sale in the noemalcourse of business b. equipment used manufacture products d any asset 6. Under a perpetual investory system, the amountorcach type of on hand is available in the a. customers ledger d merchandise inventory account Taking physical count of inventory a. is not necessary when a periodic inventory system is used b should be dine near year-end has no internal eosorol relevanee is not necessary when a perpetual inventory system is used