A Merchandiser Will Have Income from Operations of Exactly $0

question 55

Multiple Choice

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

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

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Definitions:

Thrifty

Showing care and consideration in managing resources and finances to avoid waste.

Deficit Reduction Legislation

Laws enacted to reduce the size of the budget deficit by increasing revenue or decreasing government spending.

Excise Tax

A tax levied on certain goods, services, or transactions, often with the aim of reducing consumption of the taxed items.

Personal Income Tax

A tax levied on individuals or households based on their total earnings from various sources, subject to exemptions, deductions, and tax rates.