For a Merchandising Company,the Difference Between Net Sales and Operating

question 90

True/False

For a merchandising company,the difference between net sales and operating expenses is called gross margin.

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Definitions:

After-Tax Net Income

The amount of profit a company has left after paying all its taxes.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, simplifying financial calculations.

Salvage Value

The envisaged monetary value of an asset when sold after its lifespan of utility.

Tax Rate

The percentage at which an individual or corporation is taxed.