Indicate whether each of the following statements is true or false.________ a) A merchandising company generates revenue primarily by selling goods to customers.________ b) The supply of goods accumulated to deliver when sales are made is called Supplies.________ c) Retail companies are firms that sell goods to other businesses.________ d) Product costs include all costs associated with the sale of products.________ e) Walmart is an example of a wholesale company.
What will be an ideal response?
a) T b) F c) F d) F e) F
a) This is true. Merchandising companies primarily sell goods to customers, both retail and wholesale.
b) This is false. Merchandise inventory is the account used for accumulating supplies of goods for resale.
c) This is false. Retail companies are firms that primarily sell goods to the public, not to other businesses.
d) This is false. Costs associated with selling products include cost of goods sold (product costs) and selling expenses (period costs).
e) This is false. Retail companies sell goods to the final consumer; wholesale companies sell goods to other merchandising companies. Walmart is an example of a retail company.
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