If Gross Profit Exceeds Operating Expenses,the Company

question 32

Multiple Choice

If gross profit exceeds operating expenses,the company:

• A)had a net loss.
• B)broke even.
• C)had a net income.
• D)Not enough information given.

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Definitions:

Compound Interest

Calculating interest that includes both the original principal amount and all previously accumulated interest on a loan or deposit.

Simple Interest

The method of calculating interest charges based on the principal amount only, not compounding on accumulated interest.

Deposit

A sum of money placed into a bank account or given as security for a contractual obligation.

Ordinary Annuities

Fixed payments received or paid out over a designated series of periods where the payments occur at the end of each period.