Listed Below Are Five Terms Followed by a List of Phrases

question 75

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term placing the letter designating the term in the space provided.
-_____ Equals gross profit less operating expenses.

• A)Gross profit
• B)Net income
• C)Inventory turnover ratio
• D)Operating income
• E)Income before income taxes

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Definitions:

Cumulative

Referring to something that increases or accumulates over time, such as cumulative voting rights or cumulative dividends.

Stated Value

A value assigned to no-par value stock by the issuing company's board of directors to serve as the stock's legal capital.

No-par Stock

Shares issued without a par value listed on the face of the stock certificate, allowing the company more flexibility in setting their value.

Redemption Value

The value at which a bond or other debt security can be redeemed before its maturity by the issuer.