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

(A)Mark one answer:

(B)Cost of goods sold

(C)Expenses

(D)Both cost of goods sold and expenses

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

(F)Taxes

The Correct Answer

GAAP refers to: Mark one answer:

(A)General accounting assistance program (B)Generally accepted accounting principles (C)Generally acceptable account procedures (D)The theory that accounting and the general public look at financial statements differently

Correct Answer: B

What is the difference between a balance sheet and a trial balance? Mark one answer:

(A)A trial balance does not show profit, a balance sheet does. (B)A trial balance is used at month end and a balance sheet at year end. (C)A trial balance is used to determine profit, a balance sheet to determine net assets. (D)A trial balance is used to close accounts, a balance sheet to open accounts. (E)A trial balance is an internal document, a balance sheet is an external document.

Correct Answer: E

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