An Item Has a 8

question 2

Multiple Choice

An item has a 8.2% markup based on selling price. What is the equivalent markup percent based on the cost?

• A) 92.4%
• B) 7.6%
• C) 8.9%
• D) 91.1%

---

Definitions:

Amortization of Discount

The gradual reduction of a bond discount over the life of the bond, effectively increasing the bond's book value to its face value at maturity.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Bonds Payable

Long-term liabilities represented by bonds that a company must repay to investors at a specified maturity date.