An Accountant of a Clothing Distributor Calculates the Sales of Summer

question 67

Multiple Choice

An accountant of a clothing distributor calculates the sales of summer clothes less the amount owed the manufacturer of the summer clothes.What did the accountant calculate?

• A) gross profit
• B) net profit
• C) net assets
• D) gross revenue

---

Definitions:

Discretionary Policy

Discretionary policy involves government and central banking measures that are actively implemented to influence economic conditions, such as adjusting taxes or changing interest rates.

Active Monetary Policy

Active monetary policy involves deliberate actions by a central bank to influence the economy's monetary supply and interest rates, aiming to achieve specific macroeconomic objectives.

Passive Approach

A strategy characterized by minimal or no intervention, often used in investment or management contexts.

Expansionary Gap

A situation where actual output in an economy exceeds the potential output, typically leading to inflation.