Indicate Whether Each of the Following Statements Is True or False

question 103

Short Answer

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.

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Definitions:

Investing Activities

Transactions involving the acquisition and disposal of long-term assets and investments not included in cash equivalents.

Financing Activities

Transactions involving long-term liabilities, stockholders' equity, and changes in short-term loans that affect a company's cash flow.

Note Payable

A written agreement to pay a specific sum of money, usually including interest, at a future date.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives.