Which of the Following Is Defined as the Difference Between

question 94

Multiple Choice

Which of the following is defined as the difference between total sales in dollars and total variable expenses?

• A) Margin of safety.
• B) Operating income.
• C) The gross margin.
• D) The contribution margin.

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Definitions:

Credits

Accounting entries that increase liability or equity accounts, or decrease asset or expense accounts.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of assets, provision of services, or other means.

Debits

Accounting entries that result in an increase in assets or expenses and a decrease in liabilities, equity, or income.

Credits

In accounting, credits are entries that decrease assets or increase liabilities and equity on a company's balance sheet.