Activity 1. True or False. Write "TRUE" if the statement is correct and "FALSE" if the statement is incorrect. 1. The cost of sales method presents expenses in the income statement according to its nature. 2. The main source of revenue in a merchandising business is sales. 3. Selling expenses are expenses necessary in the management of the office. 4. Merchandise inventory beginning plus net cost of purchases is cost of goods sold. 5. Sales less cost of goods sold is gross profit. 6. The multi-step income statement is used only in a service concern business. 7. The income statement shows the result of operating as well as the financial standing of a company as to a given date. 8. Other expenses are expenses directly related to the sale of merchandise. 9. Goods available for sale less merchandise inventory beginning is cost of goods sold. 10.In preparing the income statement 1/3 of a company, management may choose between the single-step income statement or multiple-step income statement basedpp/I 0 on convenience.
Activity 1. True or False. Write "TRUE" if the statement is correct and "FALSE" if the statement is incorrect. 1. The cost of sales method presents expenses in the income statement according to its nature. 2. The main source of revenue in a merchandising business is sales. 3. Selling expenses are expenses necessary in the management of the office. 4. Merchandise inventory beginning plus net cost of purchases is cost of goods sold. 5. Sales less cost of goods sold is gross profit. 6. The multi-step income statement is used only in a service concern business. 7. The income statement shows the result of operating as well as the financial standing of a company as to a given date. 8. Other expenses are expenses directly related to the sale of merchandise. 9. Goods available for sale less merchandise inventory beginning is cost of goods sold. 10.In preparing the income statement 1/3 of a company, management may choose between the single-step income statement or multiple-step income statement basedpp/I 0 on convenience.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.13MCE
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