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

---

Definitions:

Trustee Account

A type of account managed by a trustee who holds assets for the benefit of another party, ensuring the assets are managed in the beneficiary's best interest.

Short-term Securities

Financial instruments that are typically debt securities with maturities of one year or less, used for short-term financing needs.

Interest Rate Sensitive

Pertaining to assets or investments that are affected by changes in interest rates.

Treasury Bills

Short-term government securities with maturities of one year or less, sold at a discount and redeemed at face value at maturity.