4 5 6 7 All of the following statements are correct about a multiple-step income statement except: It highlights the components of net income. It results in the same amount of net income as a single-step income statement. It contains amounts for gross profit and income from operations. It provides less information than a single-step income statement. OOOOOOOO All of the following might explain a decline in the gross profit rate of a company except: Company is forced to lower the selling price of its merchandise due to a highly competitive market. Selling goods with a lower markup. Suppliers charged the company higher prices for merchandise. Operating expenses increased. Several auto dealers have experienced high new car inventory turnover recently given a computer chip shortage. High inventory turnover means that the company has a minimal amount of funds tied up in inventory may be losing sales if there are inventory shortages or stockouts all of choices are correct. may help the company reduce costs associated with the new car inventory (such as financing the inventory and security costs to protect it) 10000 Entity A made a credit sale of merchandise to a customer of $1,800 on August 15, terms 3/10, net/30. The customer returned $100 of the merchandise August 18. Th customer paid the amount due and owing on August 25. What amount did Entity A receive from the customer? $1,646 $1,800 $1,700 $1,649

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…