BUISENESS MANAGEMENT
RECORD KEEPING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Revenue and Expenses
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Cost of Merchandise sold
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Both of these
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None of these
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Detailed explanation-1: -Two income-statement-based indicators of profitability are net profit margin and gross profit margin.
Detailed explanation-2: -Income statement: Revenues Revenues are the inflows (cash or other benefits) that generally result from the sale of goods and services. Revenues can also result from the gain on sale of long-term assets such as land or equipment.
Detailed explanation-3: -An income statement shows a company’s revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (P&L) statement or an earnings statement. It shows your: revenue from selling products or services.
Detailed explanation-4: -Other Income includes income from interest, dividends, miscellaneous sales, rents, royalties and gains from the sale of capital assets. Other Expenses is a line item to record any unexpected losses unrelated to the normal course of business. It could include a loss from the disposal of equipment.