What Is Nueva's Gross Profit Ratio (Rounded)if It Elects FIFO

question 108

Multiple Choice

What is Nueva's gross profit ratio (rounded) if it elects FIFO?

• A)30%.
• B)32%.
• C)10.7%.
• D)60%.

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Definitions:

Employee's Payroll

The total amount of wages, salaries, and other earnings paid to employees by a company during a specific period, including deductions for taxes and other withholdings.

Payroll Bank Account

A dedicated bank account used by businesses to manage and process employee payrolls, ensuring funds are available for direct deposits and payroll checks.

Reconciliation Functions

The process of ensuring that two sets of records or accounts are in agreement, often used in accounting to match bank statements with ledgers.

Federal Unemployment Compensation Taxes

Taxes paid by employers to fund the federal unemployment benefits and administrative costs of state unemployment insurance programs.