Which of the Following Statements Regarding Gross Profit Is True

question 112

Multiple Choice

Which of the following statements regarding gross profit is true?

• A)Gross profit is net sales minus cost of goods sold.
• B)A company sells $10,000 of goods.If the gross profit percentage is 32%,net income would be $3,200.
• C)Gross profit is recorded by a credit to the gross profit account.
• D)If net sales are $100 and cost of goods sold is $50 then the gross profit percentage is 100%.

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