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:

Chorda Tympani

A branch of the facial nerve that carries taste sensations from the anterior two-thirds of the tongue and supplies the submandibular and sublingual salivary glands.

Spiral Organ

Organ of Corti; rests on the basilar membrane and consists of the hair cells that detect sound.

Vestibulocochlear Nerve

The eighth cranial nerve, responsible for transmitting sound and equilibrium (balance) information from the inner ear to the brain.

Cochlear

Relating to the cochlea, the spiral-shaped, inner ear structure essential for hearing.