On an Income Statement Prepared with a Direct Costing Approach,the

question 15

Multiple Choice

On an income statement prepared with a direct costing approach,the excess of sales over the cost of goods sold,based on variable costs only,is referred to as

• A) the marginal gross profit on sales.
• B) the manufacturing margin.
• C) the marginal income on sales.
• D) the contribution margin.

Apply the rules of debit and credit to various accounting transactions.

Calculate the ending balances of accounts using transaction information.

Understand the structure and purpose of a ledger and how it reflects business transactions.

Explain the difference between expenses and withdrawals.

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