A Company Reported Revenues of $375,000,cost of Goods Sold of $118,000,selling

question 194

Multiple Choice

A company reported revenues of $375,000,cost of goods sold of $118,000,selling expenses of $11,000,and total operating costs of $70,000.Gross margin for the year is ________.

• A) $257,000
• B) $246,000
• C) $176,000
• D) $252,000

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Definitions:

Financial Statements

Reports that provide detailed information about a company's financial status, including its income, expenses, equity, and cash flows, over a particular period.

Statement of Cash Flow

A financial report that details the inflows and outflows of cash within a company, highlighting its operating, investing, and financing activities.

Direct Method

An approach in accounting for cash flows that lists major cash receipts and payments during a period, providing a clearer picture of how and where cash is generated and used.

Audit Committee

A key committee of a company's board of directors responsible for oversight of financial reporting, audit processes, and compliance matters.