Which of the Following Correctly Describes the Gross Profit Percentage

question 132

Multiple Choice

Which of the following correctly describes the gross profit percentage?

• A) For most companies, the gross profit percentage changes little from year to year.
• B) Merchandising companies strive to increase the gross profit percentage.
• C) The gross profit percentage is one of the most carefully watched measures of profitability.
• D) All of the above are true.

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Definitions:

Matured

Used to describe financial instruments or investments that have reached their due date for payment or realization.

Investment

Allocation of resources, usually money, with the expectation of generating an income or profit.

Income Tax Overpayment

A situation where an individual or entity has paid more income tax to the government than was actually owed.

Canada Revenue Agency

The federal agency responsible for administering tax laws and various social and economic benefit and incentive programs delivered through the tax system for the Government of Canada.