An Account Used to Calculate Gross Profit on Trading, Prior

question 5

Multiple Choice

An account used to calculate gross profit on trading, prior to the profit and loss account is a/an ________ account.

• A)cost of sales
• B)inventory
• C)contra
• D)trading

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Definitions:

Loan Payments

Regular payments made to repay borrowed money, typically including both principal and interest components.

Ordinary General Annuity

A sequence of uniform payments made at consistent intervals, where interest is calculated and added at each period's conclusion.

Present Value

Present Value is a financial concept that represents the current worth of an amount that is to be received in the future, discounted to reflect the time value of money and interest rates.

Accurate To The Cent

Describes a level of precision in financial calculations or measurements that are exact to the smallest denomination of currency, such as a cent in the U.S. dollar.