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:

Semi-annually Compounded

Relating to the process in which the interest on a loan or investment is calculated and added to the principal amount twice a year.

Effective Annual Rate

A measure of the true interest rate accounting for the effects of compounding over a year.

Contributions

Amounts given or donated to a particular cause, project, or for a retirement account.

Effective Rate of Return

A measure of the return on an investment that accounts for the effect of compounding over a specified time period.