Table 14.3 -Refer to Table 14.3 for the Balance Sheet of Leftbank

question 91

Multiple Choice

Table 14.3

-Refer to Table 14.3 for the balance sheet of Leftbank. Leftbank's total reserves _____

• A) rose by $9,000.
• B) were not affected by this transaction.
• C) fell by $9,000.
• D) fell by $10,000.
• E) rose by $10,000.

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Definitions:

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from total revenue, indicating the efficiency of a company in managing its production and labor costs.

Net Sales

The amount of sales revenue remaining after deducting returns, allowances, and discounts from total sales.

Cost Of Goods Sold

Cost of goods sold (COGS) is the direct cost attributable to the production of the goods sold by a company, including the cost of materials and labor.

Gross Profit

The financial gain a company achieves after subtracting the cost of goods sold from its total revenue.