A Merchandiser Will Have Income from Operations of Exactly $0

question 19

Multiple Choice

A merchandiser will have income from operations of exactly $0 when

• A)sales equals cost of goods sold.
• B)cost of goods sold equals gross profit.
• C)operating expenses equal sales.
• D)gross profit equals operating expenses.

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Definitions:

Noncurrent Assets

Long-term assets not expected to convert into cash within one year, such as property, plant, and equipment, intangible assets, and long-term investments.

Investing Activities

Transactions and events that involve the purchase or sale of long-term assets and other investments not included in cash equivalents.

Operating Activities

Business actions that are directly related to the production and delivery of goods and services, which are fundamental to the company’s operations.

Cash Flow Per Share

A measure indicating the amount of cash flow generated by a company on a per-share basis, useful for assessing financial performance and liquidity.