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Problem 1: The operating cycle of a merchandiser begins when the company purchases inventory from an individual or business, called a vendor. Which statements are FALSE regarding merchandisers?
Group of answer choices
Option 1: Net Sales revenue is the same as gross profit for a service company.
Option 2: Cost of goods sold is not the same as Cost of sales to a merchandiser because COGS isn't their only expense.
Option 3: A merchandising company reports revenue using Net Sales revenue instead of Service Revenue.
Option 4: Merchandising inventory systems use Periodic inventory systems and Perpetual inventory systems.
Option 5: A merchandise inventory account is used for goods purchased for supplies, equipment, and goods intended to resell to customers.
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