FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Assuming that Merchandise business use simple step income statement. Which of the following will be correct result of Net Income by the business?
a.
Total expenses will be divided by Total revenue
b.
Total revenue will be multiplied by cost of goods sold
c.
Total Expenses will be deducted from Total Revenue
d.
Total Revenue will be deducted from Total expenses
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- Generally, the revenue account for a merchandising business is entitled Oa. Gross Sales Ob. Sales Oc. Fees Earned Od. Gross Profitarrow_forwardGross profit is A) Cost of goods sold + Opening stock B) Sales cost of goods sold C) Sales Purchases D) Net profit expensesarrow_forwardin a merchandising business gross profit is equal to the sales revenue minus (a) the sum of cost of goods sold and sales commissions (b) cost of goods sold (c) the sum of cost of goods sold and operating expenses (d) the sum of cost of goods sold, operating expenses and prepaid expensesarrow_forward
- Gross profit is: The amount left over after cost of goods sold is subtracted from net sales. A.Net sales less operating expenses. B.Sales less sales discount. C.less sales discounts. D.Net sales less selling expensesarrow_forwardWhich of the following expressions is incorrect? Gross profit - operating expenses = net income Net income + operating expenses = gross profit ● Sales revenue - cost of goods sold - operating expenses = net income ● Operating expenses - cost of goods sold = gross profitarrow_forwardOther income is a. added to operating income. b. deducted from operating income. c. added to gross profit. d. deducted from sales.arrow_forward
- For each of the following, indicate whether the item would be reported on the balance sheet (B/S),reported on the income statement (I/S), or not shown in the financial statements (Not) and whetherit relates to a service company (SC) or merchandising company (MC).Financial Statement Type of CompanyInventorySales RevenueCost of Goods Available for SaleService Revenuearrow_forwardSLO-5.1. for a merchandising business is determined by subtracting the Cost of Goods Sold from the Sale Income account. OOperating Income ONet Income OGross Profit OMerchandise Available for Salearrow_forward
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