Which of the following would not be considered a merchandising operation? a. Retailer b. Wholesaler c. Service firm d. Merchandising company Which of the following activities is not a component of the operating cycle? a. Sale of merchandise b. Payment of employees' salaries c. Collection of cash from merchandise sales d. Purchase of merchandise Gross profit equals the difference between a. net income and operating expenses. b. sales revenue and cost of goods sold. c. sales revenue and operating expenses. d. sales revenue and cost of goods sold plus operating expenses. Which of the following expressions is incorrect? a. Gross profit - Operating expenses = Net income b. Sales revenue - cost of goods sold - Operating expenses - Net income c. Net income + Operating expenses = Gross profit d. Operating expenses - Cost of goods sold - Gross profit Detailed records of goods held for resale are not maintained under a a. perpetual inventory system. b. periodic inventory system. c. double entry accounting system. d. single entry accounting system. A sales invoice is prepared when goods a. are sold for cash. b. are sold on credit. c. sold on credit are returned. d. are sold on credit or for cash. The Sales Returns and Allowances account is classified as a(n) a. asset account. b. contra asset account. c. expense account. d. contra revenue account