_____ Shows How Much the Retailer Makes as a Percentage

question 34

Multiple Choice

_____ shows how much the retailer makes as a percentage of sales after the cost of goods sold is subtracted.

• A) Net income
• B) Retained earnings
• C) Profitability
• D) Net equity
• E) Gross margin

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Definitions:

Interest Payable

A liability account on a company's balance sheet representing the amount of interest expense that has been incurred but not yet paid.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period for a more accurate financial report.

Salaries Payable

An accounting liability representing the amounts owed to employees for work performed but not yet paid.

Adjusting Entry

Journal entries made at the end of an accounting period to update account balances to their correct amounts before the preparation of financial statements.