Net Income Will Result If Gross Profit Exceeds

question 170

Multiple Choice

Net income will result if gross profit exceeds

• A)cost of goods sold.
• B)operating expenses.
• C)purchases.
• D)cost of goods sold plus operating expenses.

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Definitions:

Future Contract

A legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specific time in the future, reiterating the concept of futures contracts with a focus on its nature as a legal agreement.

Spot Price

The current market price at which a particular asset can be bought or sold for immediate delivery.

Oil

A natural resource used as a primary energy source and raw material in various industries, whose market dynamics significantly influence global economics.

Profit/Loss

The financial result obtained when revenues exceed expenses (profit) or expenses exceed revenues (loss).