Which of the Following Statements Is True of the Percentage

question 40

Multiple Choice

Which of the following statements is true of the percentage markup method of indirect proof?

• A) It extends the concept of application of funds to include the accumulation of assets and employs a balance sheet formula of sales minus costs equal net worth.
• B) It is generally limited to wholesale establishments rather than retail establishments.
• C) It requires reliable information regarding opening and closing inventories and the appropriate gross margin.
• D) It focuses exclusively on expenditures made in bank deposits.