A Company Had Net Sales of $545,000 and Cost of Goods

question 207

True/False

A company had net sales of $545,000 and cost of goods sold of $345,000,which means its gross margin is equal to $200,000.

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Definitions:

Bank Reconciliation

The method of aligning the figures in a company's financial records for a cash account with the related data on a bank statement.

NSF Check

A check that cannot be processed because the account it is drawn on does not have enough funds.

Bank Statement Adjustment

Amendments made to the balance as shown by the bank statement to reflect accurate entries for transactions not yet recorded.

Deposit In Transit

Funds that have been deposited by a company but not yet recorded by the bank.