What Is the Term Applied to the Excess of Net

question 115

Multiple Choice

What is the term applied to the excess of net revenue from sales over the cost
Of merchandise sold?

• A)Gross profit
• B)Income from operations
• C)Net income
• D)Gross sales

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Definitions:

General Journal Entries

The initial records of financial transactions, entered in the general journal, before they are posted to specific accounts in the general ledger.

Terms of Sale

The conditions under which a seller agrees to sell and a buyer agrees to buy, including payment terms, delivery time, and warranties.

Credit Terms

The conditions under which credit is extended by a seller to a buyer, including the repayment period, discount for early payment, and late penalty.

General Journal Entries

The record of financial transactions in the general journal, a part of the double-entry bookkeeping system.