If Net Income Is Rising,but Net Sales Revenue and the Gross

question 21

Multiple Choice

If net income is rising,but net sales revenue and the gross profit percentage remain the same,then:

• A)operating expenses are falling.
• B)operating expenses are rising.
• C)cost of goods sold is falling.
• D)cost of goods sold is rising.

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Definitions:

Fair Value

The capital retrieved from trading an asset or the expenditure for reallocating a liability in a well-arranged market transaction at the point of assessing value.

Carry Value

The original purchase cost of an asset adjusted for depreciation, amortization, or impairment costs on the financial statements.

Joint Operation

A business arrangement where two or more parties share control and management of a project or business.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.