Which of the Following Statements Is False When a Company

question 65

Multiple Choice

Which of the following statements is false when a company sells inventory costing $700 for $1,200 cash and operating expenses are $200?

• A)Cost of goods sold is $700.
• B)Gross profit is $500.
• C)Stockholders' equity increases by net income of $300.
• D)Net sales increase $500.

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Definitions:

Job Design

The process of organizing tasks, duties, and responsibilities into a productive work unit within an organization.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.

Integration

The process of combining or coordinating separate elements or groups into a unified whole, often seen in social, technological, and business contexts.

Authority

The competency to order, determine outcomes, and demand conformity.