Gross Profit Is Calculated by

question 208

Multiple Choice

Gross profit is calculated by

• A)subtracting cost of goods sold from sales.
• B)adding sales to operating expenses.
• C)subtracting operating expenses from sales.
• D)adding profit to sales.

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Definitions:

Straight-line Amortization

A method of reducing the carrying amount of an intangible asset over a fixed period of time in a systematic and rational manner.

Premium Amortization

The gradual expense or reduction of the premium paid above the par value of a debt security over its remaining term.

Interest Expense

The charge an entity bears for the funds it has borrowed over a set period.

Market Rate

The current price at which an asset or service can be bought or sold in a particular market.