Rachel F:  I am not 100% positive about the first one but I would say true for both. I know the second one is true.
2009-03-18 12:22:12

doinlifehere:  think 1 is false but 2 is true
2009-03-18 12:24:34

Dilse K:  www.assignmenthelp.net A+ grade marks any subject/ urgent help Expert from top universities. www.assignmenthelp.net
2009-03-18 12:25:57

twilight0987:  1) True Look at it this way: Merchandise Inventory is the same account no matter what. There's no time between 12/31/08 and 1/1/09, right? So no transactions have happened in that time to increase or decrease Merchandise Inventory. So the balance at 11:59pm on 12/31/08 is always going to be the same as the balance at 12:00am on 1/1/09. :) 2) True, kind of (if selling is your only operating expense) Here's a simple income statement: Revenue - Cost of Goods Sold = Gross Profit - Operating Expense (includes selling, general, & admin expense) = Net Income
2009-03-19 21:17:40

freenokia4u:  Don't overthink it man. financial acct is just a class to teach you how to record. 1. true - no matter what nothing changes unless you write it down. 2. true - gross profit is revenue - cost of goods sold net income is gross profit - expenses
2009-03-20 01:43:35