Question Question: 69Which of the following expressions is incorrect?A. Gross profit - operating expenses = net incomeB. Sales revenue cost of goods sold - operating expenses = netincomeC. Net income + operating expenses = gross profitD. Operating expenses - cost of goods sold = gross profit

Explanation of Gross Profit:Gross Profit is the profit a company makes after subtracting the Cost of…

Answered: Question: 69 Which of the following…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 20MC: A multi-step income statement ________. A. separates cost of goods sold from operating expenses B....

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40) The difference between Net sales and Cost of goods sold is referred as _____________. a. Gross profit b. Income statement c. Balance sheet d. Inventory
Which of the following is the correct calculation of selling price? O a. Cost + Mark-up O b. Expenses + Profit – Mark-up O c. Cost - Mark-up * Expenses O d. Expenses - Profit
Solomon Manufacturing Company was started on January 1, year 1, when it acquired $83,000 cash by issuing common stock. Solomon immediately purchased office furniture and manufacturing equipment costing $7,000 and $ 27,600, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,900 salvage value and an expected useful life of three years. The company paid $11, 100 for salaries of administrative personnel and $15, 600 for wages to production personnel. Finally, the company paid $10, 380 for raw materials that were used to make inventory. All inventory was started and completed during the year. Solomon completed production on 4, 400 units of product and sold 3,490 units at a price of $15 each in year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.)
(Multiple Choice) Which of these expressions is correct? a. Gross profit less expenses = profit. b. Sales less cost of sales less expenses = profit. c. Profit plus expenses = gross profit. d. All of the expressions are correct.
1.Which of the following may not result to the amount of cost of sales? a.Net purchases less net increase in inventory b.Net decrease in inventory plus net purchases c.Total goods available for sale less beginning inventory d.Total goods available for sale less ending inventory
Contrast the income statement effect of LIFO versus FIFO(on Cost of Goods Sold and Gross Profit) when ( a ) costsare rising and ( b ) costs are falling.
Question 49: Profit margin is calculated as net income divided by revenue. Answer: A. TrueB. False
Which of the following item is not considered in calculation of cost of goods sold? a. Direct wages O b. Purchases O c. Carriage inwards o d. None of these
3. As product costs expire(expensed), they become part of a. selling expenses. b. inventory. C. cost of goods sold. d. sales revenue.
9. Which of the following is the correct computation for the cost of goods available for sale? a.Net Sales - Cost of Goods Sold b. Sales - Cost of Goods Sold c. Beginning Inventory + Net Purchases d. Net Purchases - Ending Inventory 10. This refers to the shipping cost necessary to bring inventory purchased from the seller to the premises of the company. a. Freight - In b. Freight - Out c. Delivery Expenses d. Travelling Expenses
34. Cost of Goods Sold + Ending Inventory = _____________ Gross Profit Cost of Goods Sold Net Sales Net Purchases Total Goods Available for Sale Net Income Freight In
4. Cost of goods sold is equal to a. total goods available for sale minus ending inventory. b. total goods available for sale plus beginning inventory . c. sum of ending inventory and cost of inventory charged to expense minus net purchases. d. net purchases minus ending inventory .

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Question: 69 Which of the following expressions is incorrect? A. Gross profit - operating expenses = net income B. Sales revenue cost of goods sold - operating expenses = net income C. Net income + operating expenses = gross profit D. Operating expenses - cost of goods sold = gross profit