1.which of the following statements is true a.gross profit – cost of goods sold = net sales b.net...

1.Which of the following statements is true

A. Gross profit – Cost of goods sold = Net sales

B. Net sales + Gross profit = Cost of goods sold

C. Gross profit = Net sales – Cost of goods sold

D. Net sales + Cost of goods sold = Gross profit

2.The entry to record the sale of $100 of merchandise with terms of 2/10 n/30 will

include a: A. debit to Sales for $98.

B. debit to Cash $100.

C. debit to Accounts Receivable of $100.

D. debit to Sales Discounts for $2.

A. $25,000.

B. $20,000.

C. $18,000.

D. $85,000.

3.On a multi-step income statement, operating income is:

4.The gross profit percentage is

A. 35%

B. 65%

C. 67%

D. 33%

5.Would Gross Profit, Operating Income, and Net Income appear on a single-step

income statement? Gross Profit Operating Income Net Income

A. No No Yes

B. Yes Yes Yes

C. No Yes Yes

D. Yes No No

6.Which of the following is false?

A. Net sales = Sales revenue – Sales returns and allowances – sales discounts

B. Inventory Turnover = Cost of goods sold ÷ Ending inventory

C. Gross profit percentage = Gross profit ÷ Net sales

D. Sales - Cost of goods sold = Gross profit