All of the Following Are Owners' Equity Accounts Except for

question 70

Multiple Choice

All of the following are owners' equity accounts except for

• A) common stock.
• B) paid-in-capital in excess of par.
• C) sales.
• D) retained earnings.

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Definitions:

Gross Margin Ratio

A measure of a company's financial health, calculated as gross profit divided by net sales, showing the percentage of sales revenue that exceeds the cost of goods sold.

Perpetual Inventory System

An inventory management method that records the sale or purchase of inventory immediately through electronic tracking.

Gross Method

An accounting approach for recording purchases at the gross invoice amount before any trade discounts are taken.

Merchandising Transactions

Business activities related to the buying and selling of merchandise, which may involve inventory purchases, sales transactions, and the return of goods.