What Is the Term Applied to the Excess of Net

question 137

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:

IFRS

A global framework for financial reporting, International Financial Reporting Standards are accounting standards established by the International Accounting Standards Board (IASB).

Financial Liability

An obligation that requires the entity to transfer economic benefits including money, goods, or services to another entity as a result of past transactions or events.

Convertible Debt

A type of bond or other form of debt that can be converted into a specified number of shares of the issuing company's stock at certain times during its life.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards, principles, and procedures that companies must follow when compiling their financial statements.