Housing Repair Co

question 36

Multiple Choice

Housing Repair Co. has total revenue of $100,000. COGS is $40,000. The company's gross profit margin is ________.

• A)0)40
• B)1)40
• C)0)67
• D)0)60

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Definitions:

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, a critical component in lease accounting.

Balance Sheet

A financial statement that provides a snapshot of a company’s financial position at a specific point in time, showing assets, liabilities, and shareholder equity.

Liability

A financial obligation or debt owed by a company to others, often categorized as current or long-term.