If the gross margin is $2000 and the revenue is $5000, then the cost of goods sold would be _________?
Correct answer: B. $3,000
- A. −$8000
- B. $3,000
- C. −$3000
- D. $8,000Access Government Careers
Explanation
Gross margin equals revenue minus cost of goods sold, so cost of goods sold is $5,000 − $2,000 = $3,000. The negative option reverses this relationship.
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About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
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