The Gross Margin Estimation Method Estimates the Cost of Goods

question 37

Multiple Choice

The gross margin estimation method estimates the cost of goods sold by

• A)multiplying the sales revenue by cost-to-sales ratio.
• B)multiplying the cost of goods available by the gross margin percentage.
• C)multiplying the costs to sales ratio by purchases.
• D)multiplying the sales revenue by the inventory turnover ratio.

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Definitions:

Water Pollution

The contamination of water bodies (e.g., lakes, rivers, oceans, aquifers) with pollutants that degrade water quality and ecosystem health.

Investing Activities

Part of the cash flow statement that shows the cash spent on and generated from long-term asset operations and investments.

Long-Term Investments

Investments in stocks, bonds, or other assets that a company intends to hold for more than one fiscal year.

Interest Revenue

Income earned from lending money or investing in interest-bearing financial instruments.