If Total Merchandise Available for Sale Is 72 Percent of Net

question 94

Multiple Choice

If total merchandise available for sale is 72 percent of net sales and cost of goods sold is 64 percent of net sales,gross profit on sales is

• A) 8 percent of net sales.
• B) 36 percent of net sales.
• C) 28 percent of net sales.
• D) 20 percent of net sales.

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Definitions:

Breach

The violation or failure to observe a law, agreement, or code of conduct.

Directors' Rights

The entitlements and protections provided to members of a company's board of directors, including rights to information, participation, and decision-making.

Four Rights

Refers to essential rights typically envisioned in legal and ethical contexts, though the specific "four rights" can vary based on the doctrine or principle being discussed.

Watered Stock

Shares of a company that are issued at a value much greater than the assets of the company, leading to an inflation of the company's value on paper.