126% www Zoom Add Category Insert Tabla Chart ES-1 E5-3 E5-5 E5-9 ES-11 Exercise 5-1 Indentify each statement as True or False. If false, Indicate how to correct the statement. Mr. E has prepared the following list of statements about service companies and merchandiser 1. Measuring net income for a merchander is conceptually the same as for a service company 2. For a merchandiser, sales less operating expenses is called gross profit 3. For a merchandiser, the primary source of revenues is the sale of inventory 4. Sales salaries and wages is an example of operating expenses. 5. The operating cycle of a merchandiser is the same as that of a service company. 6. In a perpetual inventory system, no detailed records of goods on hand are maintained- 7. In a periodic inventory system, the COGS is determined only at the end fo the accounting pe 8. A periodic inventory system provides bettter control over inventory than a perpetual system 16 MacBook