Which of the Following Is Not a Component of the Gross

question 53

Multiple Choice

Which of the following is not a component of the gross profit calculation?

• A)Cost of sales.
• B)Sales returns and allowances.
• C)Allowance for doubtful accounts.
• D)Credit card discounts.

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Definitions:

Stock Price

The cost at which a share of a company is bought or sold in the stock market.

Interest Rate

is the cost of borrowing money, expressed as a percentage of the total amount loaned, paid to lenders by borrowers for the use of the borrowed funds.

Expected Future Profits

The anticipated earnings or returns a company or investment is predicted to generate in the future, based on current trends or calculations.

Random Walk Theory

A financial theory suggesting that stock market prices evolve according to an unpredictable and random path.