In a Merchandising Business, Gross Profit Is Equal to Sales

question 84

Multiple Choice

In a merchandising business, gross profit is equal to sales revenue minus:

• A)cost of goods sold, operating expenses and prepaid expenses combined.
• B)cost of goods sold and operating expenses combined.
• C)cost of goods sold only.
• D)cost of goods sold and sales commissions combined.

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Definitions:

New York Stock Exchange

One of the largest stock exchanges in the world, located in New York City, serving as a marketplace for buying and selling stocks and securities.

NASDAQ Stock Market

An American stock exchange known for its technology-heavy stock portfolio, being the second-largest in the world by market capitalization.

Electronic Communications Networks

are digital platforms that facilitate the trading of financial products outside traditional stock exchanges, connecting buyers and sellers directly.

Brokerages

Firms that act as intermediaries between buyers and sellers in financial transactions, often involving stocks, bonds, or real estate.