Markup Is Also Referred to As

question 63

Multiple Choice

Markup is also referred to as:

• A) gross margin
• B) gross profit
• C) both gross profit and gross margin
• D) price differential

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Definitions:

Paid-in Capital

Equity capital that is contributed to a corporation by its shareholders, in addition to the prescribed par value, representing funds received from investors.

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that, if omitted, accumulate and must be paid before dividends can be paid to common shareholders.

Annual Dividend

The total amount of dividend payments made to shareholders in a year.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in cash.