How does the cost of goods sold affect the gross profit as calculated in an income statement?
A) It helps to predict what future profits will be.
B) It increases the gross profits.
C) It is figured into operating expenses.
D) It does not affect the gross profits.
E) It is subtracted from net sales revenue.
Answer: E
Explanation: E) Gross profit is the total sales after the cost of goods sold have been accounted for. Cost of goods sold is therefore subtracted from net sales revenue to arrive at the gross profit.
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Which of the following is not an appropriate guideline for companies selecting independent distributors in international markets?
A) Select distributors; don't let them select you. B) Look for distributors capable of developing markets. C) Give local distributors control over marketing strategy. D) Treat local distributors as long-term partners. E) All of the above are appropriate guidelines.
All of the following are examples of subsequent events that would be disclosed in the footnotes to the financial statements except
A) fire or flood loss. B) a litigation settlement. C) a bond issuance after the balance sheet date. D) the write off of a significant uncollectible account.
In a computerized environment, all input controls are implemented after data is input
Indicate whether the statement is true or false
List the claims and defenses available to a holder in due course under the Revised Article 3 of the Uniform Commercial Code.
What will be an ideal response?