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:

Market Value

The current price at which an asset or service can be bought or sold in a marketplace.

Treasury Stock

Stocks that the company originally sold and then bought back, decreasing the number of shares available for trade in the public market.

Cash Dividend

A distribution of earnings made by a company to its shareholders, typically in the form of profits.

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often used for reinvestment in the business, debt reduction, or share repurchases.