Which of the Following Statements Is False

question 21

Multiple Choice

Which of the following statements is false?

• A)Gross profit percentage is calculated as gross profit divided by net sales.
• B)Gross profit should only be viewed for each reporting company and is not useful in comparing different companies in the same industry.
• C)Gross profit is calculated as net sales less cost of sales.
• D)A higher gross profit might be strategic in order to afford high research and development costs.

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Definitions:

Equilibrium Value

The price or point at which supply and demand for a good or service are equal, leading to market stability.

Price Level

The average price for every good and service within the current economic landscape.

Hyperinflations

An extremely high and typically accelerating inflation rate, often exceeding 50% per month, leading to a rapid erosion of the real value of the local currency and causing the population to minimize their holdings of the local money.

Money Growth

An increase in the amount of money in circulation or in the overall money supply within an economy.