With Regards to the Income Statement for a Retailer, Which

question 23

Multiple Choice

With regards to the income statement for a retailer, which of the following statements is correct?

• A) The cost of sales section is the same no matter whether the periodic or perpetual inventory system is used.
• B) Under the periodic system freight inwards is added to the cost of purchases.
• C) Interest revenue is added to sales revenue to calculate gross profit.
• D) Expenses are classified into the groupings selling expenses, distribution expenses, and administrative and finance expenses.

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Definitions:

Poor Written Communication

Refers to text-based messages that are unclear, contain errors, or fail to convey the intended information effectively.

ATX Power Supply

A standard for power supplies for personal computers, providing power to the motherboard, drives, and other components.

CPU Power

The amount of electrical power consumed by a computer's central processing unit (CPU), impacting its performance and heat generation.

Motherboard Power

The power supplied to the motherboard, central to the functioning of all components and peripherals attached to the computer.