Posted: May 3rd, 2016
1. Which of the following accounts is not included in the calculation for Gross Profit?
a) Revenue
b) Cost of goods sold
c) Net sales
d) General and selling expenses
2. An item that cost $90 is sold for $120. The gross profit ratio for this item is;
a) 20%
b) 25%
c) 33.3%
d) 60%
Identify whether each transaction below is an operating, investing or financing activity. Assume the indirect method.
A. Purchase of plant seeds.
B. Increase in accounts payable.
C. Decrease in accounts receivable.
D. Payment of long-term loan
E. Net income
F. Depreciation expense.
G. Payment of dividends.
H. Issuing stock
I. Increase in investing.
J. Decrease in taxes payable
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