A company had sales of $350,000 and cost of goods sold of $200,000. Its gross profit equals $150,000.

A. Is another term for revenue.
B. Is another term for merchandise sales.
C. Is also called gross margin.
D. Is a term only used by service firms.
E. Is the term used for the expense of buying and preparing merchandise for sale.

Accounts receivable to inventory to cash sales.
B. Accounts receivable to purchases of merchandise to inventory to cash sales.
C. Inventory to purchases of merchandise to cash sales.
D. Purchases of merchandise to inventory to accounts receivable to cash sales.
E. Purchases of merchandise to inventory to cash sales.

A. Ending inventory.
B. Cost of goods sold.
C. Shown on the balance sheet.
D. Merchandise (goods) available for sale.
E. Sales.

All goods in transit.
B. All goods on consignment.
C. Only damaged goods.
D. All goods owned by a company and held for sale.
E. Only non-damaged goods.