Which of the Following Statements Is False

question 21

Multiple Choice

Which of the following statements is false?

• A)Gross profit percentage is calculated as gross profit divided by net sales.
• B)Gross profit should only be viewed for each reporting company and is not useful in comparing different companies in the same industry.
• C)Gross profit is calculated as net sales less cost of sales.
• D)A higher gross profit might be strategic in order to afford high research and development costs.

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Definitions:

Investment Banker

A professional who works in a financial services company or division that specializes in raising capital for companies, governments, or other entities.

Initial Margin

The upfront payment required when opening a position in the futures market, serving as a guarantee for future contract fulfillment.

Primary Market

The market in which new issues of securities are offered to the public.