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
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
More CPA Exam Questions
- 1Which one of the following is least likely an advantage associated with a wholly owned foreign subsidiary?
- 2Another name for an income statement is a: Mark one answer:
- 3A static budget contains which of the following amounts?
- 4Larry, who uses the accrual basis of accounting, hired an extra driver to help him make deliveries in December. The extra driver only works from December 1st through the 31st . Larry pays the driver on January 5th, but the expense is shown on the December income statement. Why? Mark one answer:
- 5Nala Inc. reported deferred tax assets and deferred tax liabilities at the end of 20X4 and at the end of 20X5. Acording to FASB 109, for the year ended 20X5, Nala should report deferred income tax expense or benefit equal to the