Which of the following defines the Bottom Line?
A: The lowest level sales can fall to if the company is to stay profitable.
B: Profit remaining after all costs of the company have been paid.
C: The gross figure of all revenue earned in the statement period.
D: The cost of materials required to manufacture the goods that were sold.
A: The lowest level sales can fall to if the company is to stay profitable.
B: Profit remaining after all costs of the company have been paid.
C: The gross figure of all revenue earned in the statement period.
D: The cost of materials required to manufacture the goods that were sold.
举一反三
- The gross profit percentage is calculated as: A: cost of goods sold divided by net sales revenue. B: net sales revenue minus gross profit on sales. C: net sales revenue minus cost of goods sold. D: gross profit divided by net sales revenue.
- Which statement is true? A: The Sales account is used to record only sales on account. B: Gross profit is the excess of sales revenue over cost of goods sold. C: A service company purchases products from suppliers and then sells them. D: Purchase returns and allowances increase the net amount of purchases.
- The company’s bottom line dropped because A: sales revenue decreased. B: cost of goods sold increased. C: the government raised taxes. D: there was an error in the P & L.
- Theof sales revenue over cost of goods sold is called or gross profit. Gross indicates that thehave not been .
- Changes in the cost of goods sold can have a substantial impact on gross profit margin.