Pinexam——There is royal road to learning.
Home ACT Math ACT English PE Exam CPA IELTS Contact Us


Which of the following is subtracted from net sales to determine gross profit?

(A)Mark one answer:

(B)Cost of goods sold


(D)Both cost of goods sold and expenses

(E)Cost of goods sold, expenses, and taxes


The Correct Answer

One purpose of GAAP is to provide _____ between accounting periods.






Correct Answer: E

Jenny's Bakery recently delivered a bad batch of cakes to a local restaurant. Jenny quickly refunded the cost of the cakes to the restaurant. Her accountant made a _____ to her Refunds of Sales account for this transaction:

(A)note (B)debit (C)credit (D)cost adjustment (E)deposit

Correct Answer: B

In the statement of owner’s equity, owner’s equity or capital is calculated using: Mark one answer:

(A)Gross income (B)The positive or negative cash flow figure from the statement of cash flows (C)Assets (D)Total income from operating activities (E)Net income

Correct Answer: E

More CPA Exam Questions