The Financial Statement That Presents a Summary of the Revenues

question 93

Multiple Choice

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or a year, is called a(n)

• A) Statement of Cash Flows
• B) Statement of Retained Earnings
• C) Income Statement
• D) Balance Sheet

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold before accounting for other expenses.

Perpetual Inventory System

An accounting method that records inventory purchases or sales in real-time through the use of computerized point-of-sale systems and enterprise asset management software.

Cost of Merchandise Sold

The total cost incurred by a company to sell goods during a specific period, including purchase and direct labor costs.

Merchandising Business

A type of business that purchases goods wholesale and resells them retail; primarily involved in selling merchandise to consumers.