Multiple Choice: Circle the correct answer. 1. Sales revenue less cost of goods sold is called a. gross profit. b. net profit. c. net income. d. marginal income. 2. Cost of goods sold is determined only at the end of the accounting period in a. a perpetual inventory system. b. a periodic inventory system. c. both a perpetual and a periodic inventory system. d. neither a perpetual nor a periodic inventory system. 3. As an incentive for customers to pay their accounts promptly, a business may offer its customers a. a sales discount. b. free delivery. a sales allowance. c. d. a sales return. A merchandising company that sells directly to consumers is a a. retailer. b. wholesaler. c. broker. d. service company. 4. Financial information is presented below: Operating Expenses Sales Returns and Allowances Sales Discounts Sales Revenue Cost of Goods Sold 5. 92,800 18,000 12,000 350,000 176,000 The amount of net sales on the income statement would be a. $320,000. b. $332,000 c. $338,000. d. $350,000