Which of the Following Statements Is Incorrect

question 73

Multiple Choice

Which of the following statements is incorrect?

• A)If selling and administrative expenses as a percentage of sales increases, then gross margin percentage will decrease.
• B)If the cost of goods sold percentage decreases and other expenses do not change, then profit margin will increase as a percentage of sales.
• C)If sales dollars decrease, a company might still report a higher gross profit percentage if cost of goods sold decreases at a faster rate than the decrease in sales.
• D)It is possible for selling and administrative expense in dollars to decrease, while selling and administrative expenses as a percentage of sales to increase.

---

Definitions:

Converse

In logic, the converse of a statement is the reversal of its subject and predicate, testing different aspects or implications of the original statement.

Proposition

A declarative sentence or phrase that can be either true or false, expressing a basic statement or assertion.

Contrapositives

In logic, the statement formed by negating and swapping the subject and predicate of the original conditional statement.

Relationship

The approach through which a connection is established between two or more concepts, items, or people, or the fact of being interconnected.