The Primary Source of Revenue for Merchandising Companies Is

question 158

Multiple Choice

The primary source of revenue for merchandising companies is

• A) investment income.
• B) service fees.
• C) the sale of merchandise.
• D) the sale of fixed assets the company owns.

---

Definitions:

Cost Of Goods Sold

The immediate expenses related to manufacturing products sold by a business, which encompass both materials and labor.

Merchandise Inventory

The total value of a company's products that are physically held in stock, awaiting sale to customers.

Accounts Receivable Turnover

A financial ratio that measures how many times a company collects its average accounts receivable within a given period.

Net Accounts Receivable

The amount of money owed by customers for goods or services that is expected to be collectible, after accounting for allowances for doubtful accounts.