Which of the Following Statements Is Correct

question 41

Multiple Choice

Which of the following statements is correct?

• A)When cost of goods sold as a percentage of sales increases,the gross profit percentage will increase.
• B)It is possible that when cost of goods sold in dollars increases,cost of goods sold as a percentage of sales decreases.
• C)If gross profit percentage is the same for the current and past year,then sales and cost of goods sold in dollars did not change.
• D)If gross profit percentage increases from one year to the next,then the net income percentage will also increase from one year to the next.

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Definitions:

General Deterrence

A legal philosophy aimed at discouraging the general public from committing crimes by making examples of specific violators through punishment.

Punishment

A sanction imposed for violating a law, rule, or agreement, aiming at correcting behavior or serving as a deterrent.

White-Collar Crime

Non-violent crime committed by individuals, typically during the course of their occupation, for financial gain. These crimes often involve fraud, embezzlement, or bribery.

Sarbanes-Oxley Act

A law enacted to protect investors by improving the accuracy and reliability of corporate disclosures.