For a Merchandising Company,the Difference Between Net Sales and Cost

question 71

True/False

For a merchandising company,the difference between net sales and cost of goods sold is called gross margin.

Record and analyze business transactions and their effects on the accounting equation.

Prepare an owner’s equity statement.

Calculate net income or loss by analyzing changes in owner's equity.

Understand and apply accounting terminology relevant to sole proprietorships.

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Definitions:

After-Tax Net Income

The amount of profit remaining after all taxes have been deducted from total revenue.