When Analyzing a Company's Income Statement, a Fact to Remember

question 22

Multiple Choice

When analyzing a company's income statement, a fact to remember is that:

• A) cost of sales is another term for gross profit.
• B) cost of goods sold is the major expense of merchandising entities.
• C) companies are not allowed to offset items such as interest income and interest expense against each other.
• D) net sales is equal to sales revenue less cost of goods sold.

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Definitions:

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Health Promotion

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