Positive Operating Income Will Result If Gross Profit Exceeds

question 184

Multiple Choice

Positive operating income will result if gross profit exceeds

• A)costs of goods sold.
• B)salaries and wages expense.
• C)cost of goods sold plus operating expenses.
• D)operating expenses.

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Definitions:

Independent Internal Reviews

Evaluation processes conducted within an organization by an independent party to assess the organization's operations, procedures, or financial statements.

Accounting Period

A specific time frame covered by financial statements, typically a fiscal quarter or year, used for calculating earnings and managing taxation.

External Auditor

An independent third party hired to examine the financial statements of an entity to ensure accuracy and adherence to accounting standards.

Internal Control System

A set of procedures and mechanisms implemented by a business to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.