Which of the following accounts would be considered a permanent account? Merchandise Inventory Sales Cost of Goods Sold Sales Returns and Allowances A company had sales of $480000 and its cash received from customers was $400,000. The difference between these amounts reflects. An $80,000 decrease in accounts payable. An $80,000 increase in accounts payable. An $80,000 decrease in accounts receivable. An $80,000 increase in accounts receivable. An $80,000 increase in gross profit. The acid-test ratio differs from the current ratio in that Liabilities are divided by current assets. Inventory is excluded. It measures profitability. It excludes short-term investments. It is a measure of liquidity. A company's net sales were $676, 600, sales returns and allowances were $6,000 and its sales discounts were $3, 600. Its total sales equals: $667,000 $670, 600 $673,000 $686, 200 None of the above. A company purchased $1, 800 of merchandise on December 5. On December 7, it returned $200 worth of merchandise. On December 8, it paid the balance in full, taking a 2% discount. The amount of the cash paid on December 8 equals: $200.00 $1, 564,00 $1, 568.00 $1, 600.00 $1, 600.00 A company purchased $4,000 worth of merchandise, and transportation costs were an additional $350. The company later returned $275 worth of merchandise and it paid the invoice within the 2% cash discount period. The total amount of the cash paid for this merchandise transaction is: $3, 725.00 $3, 925.00 $3, 995.00 $4,000.50 $4, 075.00 If a merchandising company ends a period with a larger inventory than it had at the beginning of the period, then: The cost of goods sold was larger than net purchases. Net income was larger than gross profit. The cost of goods sold was less than net purchases. The cost of goods available for sale was less than the cost of goods sold. Gross profit was larger than the cost of goods sold