Select all the following statements that are true. Assume Gross Profit (Sales - COGS) for any product sales is positive. Group of answer choices When you sell goods on account, income and cash flow increase When you sell goods on account, income increases and cash flow decreases When you sell goods on account, income increases and cash flow is unaffected When you collect from customers that had previously purchased goods on account, income and cash flow increase When you collect from customers that had previously purchased goods on account, income increases and cash flow is unaffected When you collect from customers that had previously purchased goods on account, income is unaffected and cash flow increases
Select all the following statements that are true. Assume Gross Profit (Sales - COGS) for any product sales is positive. Group of answer choices When you sell goods on account, income and cash flow increase When you sell goods on account, income increases and cash flow decreases When you sell goods on account, income increases and cash flow is unaffected When you collect from customers that had previously purchased goods on account, income and cash flow increase When you collect from customers that had previously purchased goods on account, income increases and cash flow is unaffected When you collect from customers that had previously purchased goods on account, income is unaffected and cash flow increases
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Select all the following statements that are true. Assume Gross Profit (Sales - COGS) for any product sales is positive.
Group of answer choices
When you sell goods on account, income and cash flow increase
When you sell goods on account, income increases and cash flow decreases
When you sell goods on account, income increases and cash flow is unaffected
When you collect from customers that had previously purchased goods on account, income and cash flow increase
When you collect from customers that had previously purchased goods on account, income increases and cash flow is unaffected
When you collect from customers that had previously purchased goods on account, income is unaffected and cash flow increases
Expert Solution
Step 1: Introduction
Gross profit represents the fundamental profitability of a company's core business activities, excluding other operational costs and overheads. Specifically, it is calculated by subtracting the cost of goods sold (COGS) from total sales or revenues.
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