A Company Shows the Following Balances What Is the Gross Profit Rate?
A) 30%
B) 44

question 115

Multiple Choice

A company shows the following balances: $$\begin{array} { l r } \text { Sales Revenue } & \$ 2,500,000 \\\text { Sales Returns and Allowances } & 450,000 \\\text { Sales Discounts| } & 50,000 \\\text { Cost of Goods Sold } & 1,400,000\end{array}$$ What is the gross profit rate?

• A) 30%
• B) 44%
• C) 56%
• D) 70%

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Definitions:

Negotiability

The quality of a financial instrument that allows it to be transferred or assigned from one party to another in exchange for value.

Sum Certain In Money

A specified, fixed, or exact amount of money that is owed or due to be paid under a contract or agreement.

Enforceable Contract

a valid agreement between parties that can be legally upheld and compelled in a court of law.

Payment

The transfer of money or goods from one party to another as a fulfillment of a transaction or obligation.