Which of the Following Statements Is True

question 51

Multiple Choice

Which of the following statements is true?

• A)The sales revenue is $1,000.
• B)The gross profit is $1,000.
• C)The cost of goods sold is $1,000.
• D)The net income is $1,000.

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Definitions:

FASB

The Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards in the United States.

Federal Trade Commission

The Federal Trade Commission is a U.S. federal agency tasked with protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.

American Association of CPAs

A professional organization in the United States that sets ethical standards for Certified Public Accountants and offers training and certification.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed in the business within one year or within the business's operating cycle, whichever is longer.