Why Are Inventories Included in the Computation of Net Income

question 56

Multiple Choice

Why are inventories included in the computation of net income?

• A) to determine cost of goods sold
• B) to determine sales revenue
• C) to determine merchandise returns
• D) Inventories are not included in the computation of net income.

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Definitions:

Positions of Power

Roles or statuses within a society, organization, or group that grant individuals authority, influence, and the ability to make decisions that affect others' lives or operations.

Like Themselves

An inclination towards connecting with or favoring individuals who share similar traits, characteristics, or interests; related to the concept of homophily.

Glass Ceiling

A metaphorical barrier that prevents minority groups, including women and people of color, from advancing beyond a certain level in a hierarchical organization due to discrimination.

Women of Color

Refers to women who are not of white or European heritage, emphasizing the intersection of gender and racial or ethnic identity.