expert of general account answer Gross profit is determined by subtracting the cost of merchandisesold from what?A) The cost of merchandise purchasedB) Fees earnedC) Net salesD) Accounts receivable

Step 1: Definition of Gross ProfitGross Profit is the amount a company earns from selling goods…

Answered: Gross profit is determined by…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter22: End-of-fiscal-period Work For A Corporation

Section22.2: Preparing An Income Statement, Statement Of Stockholders’ Equity, And Balance Sheet

Problem 1AYU

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Similar questions

How do you calculate the markup on cost of goods sold? Is the markup pure profit? Explain.
Sales Returns and Allowances is classified as a contra-cost account on the income statement.
Gross profit is calculated as the difference between net sales revenue and ________. A. cost of merchandise inventory B. purchase expense C. cost of goods sold D. operating expenses
What is the term applied to the excess of revenue from sales over the Cost of Merchandise Sold? a. net income Ob. gross sales Oc. gross profit Od. income from operations
General Account
Sales Revenue is a(n) Multiple Choice O account and asset; Sales Discounts revenue: Sales Returns and Allowances revenue; Cost of Goods Sold liability; Gross Profit is an expense account.
Net Sales Cost of Goods Sold is equal to: - a. Gross Expenses. b. Gross Profit. c. Operating Expenses. d. Net Income from Operations.
a. Added to other income. whether taken or not b. Added to other income, only if taken Deducted from inventory, whether taken or not d. Deducted from inventory, only if taken C. accounted for in the computation of cost of goods sold? a. Trade discounts applicable to purchases b. Cash discounts taken- c. Purchase returns and allowances d. Cost of transportation for merchandise purchased 3. The use of purchase discount account implies that the recorded cost of a purchased inventory is a. Invoice price b. Invoice price plus any purchase discount lost c. Invoice price less the purchase discount taken d. Invoice price less the purchase discount allowable whether taken or not 4. The use of a discount lost account implies that cost of a purchased inventory is a. Invoice price b. List price c. Invoice price less the purchase discount taken d. Invoice price less the purchase discount allowable whether or not taken 5. The valuation of inventory on a prime cost basis a. Would achieve the same…
On a multiple-step income statement, the excess of net sales over the cost of merchandise sold is called?" Cost of Goods Sold Operating income Net income Gross profit
which of the following would be considered in the calculation of gross profit? Sales and returns and allowances Inventory revenue delivery expenses utilities expenses
True or False: In calculating gross profit, sales revenue is first adjusted for sales returns, discounts and allowances (net sales). Select one: True False
Which of the following accounts is an example of a contra-asset?A) Cost of Goods Sold B)Sales Discounts C) Purchases D) Deferred Revenue E) LIFO Reserve

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Gross profit is determined by subtracting the cost of merchandise sold from what? A) The cost of merchandise purchased B) Fees earned C) Net sales D) Accounts receivable