9. Which of the following levels of profitability in a multistep income staterne

Question

9. Which of the following levels of profitability in a multistep income staternent represents the revenues from the sale of inventory less the cost of that inventory? A. B. C. D. Income from operations Gross profit Income before income taxes Net income 10. When goods are sold to a customer with credit terms of 2/15, n/30, the customer will receive a: 15% discount if they pay within 2 days. 2% discount if they pay at least 15% of the amount due within 30 days. C. I 5% discount if they pay within 30 days. D. 2% discount if they pay within 15 days. 11. The following account balances appeared on the company's trial balance at year-end: Sales Returns and Allowances Accounts Receivable Sales Discounts Sales Revenue Selling, General, and Administrative Expenses S 640 10,400 1,400 71,200 1,000 The amount of net sales reported on the company's income statement would be: A. $79,600. B. $71,200. C. $69,160. D. $68,160. Use the following information to answer questions 12 through 14. Milidantri Corp. entered into the following transactions: -October 2 Sold merchandise to a customer for $105,000, terms 210, n30· The merchandise cost October 5 The customer returned $9,000 of merchandise to Milidantri. The items were in perfect Milidantri $69,000. The returned merchandise cost condition and Milidantri gave credit to its customer. Milidantri $5,700. - October 11 The customer paid the amount owed to Milidantri

Explanation / Answer

9. Gross Profit = Sales- Cost of goods sold. Therefore Gross Profit in a multistep income statement represents revenue from sale of inventory less the cost of Inventory.

Answer B

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