Gross Margin of a Merchandise Business will be calculated by using which of the following formula? a. Sales less Total expenses b. Sales less Total Operating expenses c. Sales less Cost of Merchandise sold d. Sales less Merchandise Inventory at the end of the year

Q: On the income statement of a merchandising company, interest income and interest expense are…

A: Merchandising company generally uses the same 4 part of financial statements : 1. Income Statement…

Q: Identify the better performer between Best Buy and Dollar General. Calculate how much inventory the…

A: We are given some calculations regarding two companies - Best Buy and dollar General.  Based on the…

Q: Under the LIFO cost flow assumption during a period ofinflation, which of the following is false? A.…

A: Inflation and cost of goods sold - a company selling goods during periods of inflation will see an…

Q: On a multiple-step income statement, the excess of net sales over the cost of merchandise sold is…

A: Net sale is the amount of revenue that has been earned by the an entity after deducting returns and…

Q: How to calculate the gross profit for merchandise business? A. Total Sales minus all the operating…

A: The Gross profit is the excess of revenue over the cost of goods sold. It is the amount available…

Q: (True or False) Cost of sales, under the periodic system, is calculated as inventory at start (plus…

A: Periodic Inventory System - Under periodic inventory system cost of goods sold will be calculated at…

Q: Which of the following formula is correct for Gross Margin of a Merchandise Business under…

A: Gross margin: Difference between the net sales and the cost of goods sold is called gross margin.

Q: If the ending inventory of a firm is overstated by $49,000, by how much and in what direction…

A: Computation of Income: Gross Profit = Sales – COGS COGS = Opening Inventory + Purchases – Closing…

Q: Compared to using the FIFO method to account for inventory, during periods of risingprices, a…

A: USING OF LIFO METHOD

Q: Use the following key account balances from SonJack Company's Balance Sheet and Income Statement as…

A: Gross margin is the amount of sales revenue left after covering the cost of goods sold. Sales…

Q: Which of the following is true of the income statement? O Net income equals the amount of cash…

A: Under the accrual concept of accounting, expenses and revenues are recognized to the period in which…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: Inventories refer to the stock of goods that is held for the ultimate purpose of resale.

Q: If the dollar amount in ending accounts payable is greater than the dollar amount in beginning…

A: Solution- Accounts payable are amounts due to vendors or suppliers for goods or services received…

Q: gross profit method assumes

A: The gross profit technique calculates the value of inventory by combining current period data on net…

Q: Gross profit is the difference between: Select one: a. revenues and expenses. b. net income and…

A: Gross profit is the company's profit after deducting the unit cost of goods from sales. Gross profit…

Q: multiple choice: Which of the following statements is TRUE? A. The inventory turnover ratio shows…

A: Ratio Analysis provides insights into the performance of the company based on various parameters.

Q: The difference between sales and cost of goods sold for a retail business is: a.net sales. b.gross…

A:

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: A ratio that provides information regarding the number of times a company sold or replaced its…

Q: Fill in the blanks in the following separate income statements a through e. (Amounts to be deducted…

A: Introduction: The Income Statement is a fundamental financial statement that displays a company's…

Q: Cost of goods sold equals to a) ® Cost of goods available for sale - ending inventory. b) © Sales +…

A: COST OF GOODS SOLD REFERS TO THE DIRECT COSTS OF PRODUCING THE GOODS SOLD BY A COMPANY .

Q: Which of the following formula is correct for Gross Margin of a Merchandise Business under…

A:

Q: Dividing cost of goods sold by the average of merchandise inventory is the calculation for the…

A: The ratio indicates how fast the company selling its inventory. a high inventory turnover indicates…

Q: Johnson would like to know the inventory turnover ratio. You may tell Johnson to a. Divide cost of…

A: Inventory turnover ratio provide the number of times inventory comes and is sold in a year.

Q: In a period of rising prices,a. cost of goods sold under LIFO will be less than under FIFO.b. gross…

A:

Q: Question 1  Indicate which one of the following would not appear on both a single-step income…

A: Since question 1 and 2 are incomplete we will answer question 3. Thank you.

Q: . Net income plus operating expenses is equal to (assume there are no other income and expenses). a.…

A: Solution: 16 Cost of merchandise sold is equal to Net Income minus Gross Profit Cost of goods…

Q: the ending inventory of a firm is overstated by $49,000, by how much and in what direction…

A: Solution Concept Mathematically Cost of goods sold       =beginning inventory + purchase – ending…

Q: When a company that sells its products with a positive gross profit increases its sales by15 percent…

A: Answer:   Option b.

Q: Concept introduction Gross profit ratio: Gross profit ratio calculated by dividng the gross profit…

A: Cost of goods sold means cost incurred on goods or cost of goods that are being offered for sale to…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: Average inventory = (beginning inventory+ending inventory)/2 Inventory turnover = net sales/Average…

Q: Which of the following will increase the gross profit of the merchandising business? Increase in…

A: Gross profit = Sales - cost of goods sold where, Cost of goods sold = Purchase cost of goods used +…

Q: What is the term applied to the excess of revenue from sales over the Cost of Merchandise Sold? a.…

A: Revenue from sales represents the amount of revenue recognized from the sales made during a…

Q: The gross profit rate is equal to: Choose net income divided by sales. cost of goods sold divided by…

A: Income statement is a part of financial statements of a company. It shows the company’s income and…

Q: Which of the following statements is correct? Group of answer choices A)When cost of goods sold as a…

A: Cost of goods sold is the total costs that is used to create a product or service, which has been…

Q: During a period when inventory costs are steadily increasing, which of the following is true? O a.…

A: FIFO considers the cost of initial purchases as the cost of goods sold and the later purchases as…

Q: Which of the following statements is true with regard to the gross profit ratio? An increase in…

A: Gross profit is an excess amount of revenue over its cost of goods sold.it measures profitability…

Q: A business uses a perpetual inventory system. During periods of rising prices, cost of goods sold…

A: In FIFO the earliest  goods ( beginning) will be sold first.

Q: Assuming that Merchandise business use simple step income statement. Which of the following will be…

A: THE EQUATION USED IN A SIMPLE STEP INCOME STATEMENT : TOTAL REVENUE = (REVENUE + GAINS) TOTAL…

Q: Using a perpetual inventory system, the return to their supplier of merchandise purchased on account…

A: When merchandise purchased on credit Inventory accout is debited and accounts payable is credited.…

Q: Which of the following represents the components of the income statement for a merchandising…

A: Merchandising business means those business in which purchased goods are sold to end consumers and…

Q: Which of the following statement is False for Multi-step income statement of a merchandise business?…

A: Net income is referred to the income earned by an organization or an individual proprietor after…

Q: The sales revenue section of an income statement for a retailer would not include Select one: a.…

A: The sales revenue section of an income statement for a retailer would not include

Q: Assuming that Merchandise business use multiple step income statement. Which of the following will…

A: Revenue - Expense = Profit

Q: cost of merchandise sold? S What is the term applied to the eXcess of net revenue from sales over…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…