The Gross Profit for the Southern Division Is

question 125

Multiple Choice

The gross profit for the Southern Division is:

• A)$150,000.
• B)$295,000.
• C)$235,000.
• D)$120,000.

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Definitions:

Income Statement Columns

This refers to the structured segments in an income statement or profit and loss account, showing revenues, expenses, and profits or losses of an entity over a specific period.

Debit Column

is a section in accounting records where increases in asset and expense accounts or decreases in liability, equity, and revenue accounts are entered.

Credit Column

The column in an accounting ledger where credit transactions are recorded, reflecting increases in liabilities, equity, or revenue, or decreases in assets or expenses.

Service Revenue

The income a company earns from providing services as opposed to selling physical goods, and it is recorded as it is earned in the accounting period.