The Gross Profit Method

question 76

Multiple Choice

The gross profit method:

• A) determines the value of the ending inventory using a cost-to-retail ratio.
• B) is often used for interim financial reports.
• C) determines the value of the ending inventory using a predetermined gross profit rate.
• D) Both A and B are correct.

---

Definitions:

Volcanic Eruptions

The release of lava, ash, and gases from a volcano, which can have significant effects on the surrounding environment.

Correct Verb

The verb in a sentence that accurately matches its subject in number and tense, effectively conveying the action or state of being.

Tsunamis

Large, powerful sea waves caused by underwater earthquakes, volcanic eruptions, or other disturbances, capable of causing widespread destruction.

Correct Verb

The usage of the appropriate verb form that agrees with the subject in number and person and fits the sentence meaning.