If the gross margin is $9000 and the cost of goods sold is $8000 then the revenue will be _________?
Correct answer: C. $17,000
- A. $1,000
- B. −$1000
- C. $17,000
- D. −$17000
Explanation
Gross margin equals revenue minus cost of goods sold, so revenue is $9,000 + $8,000 = $17,000. The negative options incorrectly reverse the normal 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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