Can a business earn a gross profit but incur a net loss? Explain.
Question:
Can a business earn a gross profit but incur a net loss? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
Yes Gross profit is the excess of net sales over cost ...View the full answer
Answered By
Charles Okinda
students should give all the instructions concerning the challenge that they face. they will get an immediate response because I am always online.
4.90+
754+ Reviews
1481+ Question Solved
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted:
Students also viewed these Accounting questions
-
Explain how a business can earn a positive gross profit on its sales and still have a net loss.
-
Gross Profit The gross profit of a business is the difference between what a retailer charges for what it sells (net sales) and the cost of the items sold. For example, in the first quarter of 2010,...
-
Gross profit for April was two-fifths of net sales, and net income was two-sevenths of gross profit. Net income was $4200. (a) What was the gross profit for April? (b) What were net sales for April?
-
Scott and Associates, Inc., is an accounting firm that has three new clients. Project leaders will be assigned to the three clients. Based on the different backgrounds and experiences of the leaders,...
-
A university currently has a recycling program for paper waste. The fixed cost of running this program is $15,000 per year. The variable cost for picking up and disposing of each ton of recyclable...
-
The Perez Trust incurred the following items this year. Taxable interest income ......................................................... $75,000 Tax-exempt interest income, not on private activity...
-
On January 3, Jose Rojo, Inc., paid $224,000 for equipment used in manufacturing automotive supplies. In addition to the basic purchase price, the company paid $700 transportation charges, $100...
-
Faune Furniture Co. consists of two divisions, Bedroom Division and Dining Room Division. The results of operations for the most recent quarter are: (a) Determine the company's sales mix. (b)...
-
Student enrollment is up at the local community college. Lacey Grey, the admissions and enrollment coordinator is excited about this, but she is also worried that the current enrollment process may...
-
Richard chooses technique 0 and 2 requiring 10+10-20 efforts and provising 10+11=21 benefits. Hence, 21 is returned as the output Example 2: input1: 3 input2: (10,10,10,10) input3: (10,11,12,15)...
-
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2010. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated on pages 157168....
-
How are sales to customers using MasterCard and VISA recorded?
-
On January 5, 2010, Phelps Corporation received a charter granting the right to issue 5,000 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 50,000 shares of $10 par...
-
Which of the following transactions will increase the debt-to-assets ratio? a. The company issues stock to investors. b. The company uses cash to buy land. c. The company issues a note payable to buy...
-
Which of the following reports is filed annually with the SEC? a. Form \(10-\mathrm{Q}\) b. Form \(10-\mathrm{K}\) c. Form 8-K d. Press release
-
The fabrication department provides a component for the assembly department. The assembly department's usage of the component is 4,800 units per 8-hour day. The fabrication department fills each...
-
Which of the following describes the order in which assets are reported under IFRS? a. Increasing order of liquidity. b. Increasing time to maturity. c. Decreasing order of liquidity. d. Decreasing...
-
The Belmont Company must produce 1,500 boxes of product A each year, 2,000 boxes of product B each year, and 500 boxes of product C each year. The Belmont Company works 250 days a year, and it can...
-
Sketch a velocity-versus-time graph for a rock that is thrown straight upward, from the instant it leaves the hand until the instant it hits the ground.
-
Imagine a sound wave with a frequency of 1.10 kHz propagating with a speed of 330 m/s. Determine the phase difference in radians between any two points on the wave separated by 10.0 cm.
-
Problems 916 refer to the following transition matrix: In Problems 912, find S 1 for the indicated initial-state matrix S 0 and interpret with a tree diagram. S o = [.5 .5] P= A A 1.8 1.4 B .2 .6
-
Izzy Inc. purchased a patent for $350,000 which has an estimated useful life of 10 years. Its pattern of use or consumption cannot be reliably determined. Prepare the entry to record the amortization...
-
Izzy Inc. purchased a patent for $350,000 which has an estimated useful life of 10 years. Its pattern of use or consumption cannot be reliably determined. Prepare the entry to record the amortization...
-
Izzy Inc. purchased a patent for $350,000 which has an estimated useful life of 10 years. Its pattern of use or consumption cannot be reliably determined. Prepare the entry to record the amortization...
-
Southwestern Wear Inc. has the following balance sheet: Current assets Fixed assets $1,875,000 Accounts payable 1,875,000 Notes payable Subordinated debentures Total assets Total debt Common equity...
-
The bid sides of the book at three exchanges are: price Exchange A Exchange B Exchange C Shares Shares Shares Shares Shares Shares Displayed hidden Displayed hidden Displayed hidden 10.49 100 700 100...
-
McDougan Associates, a U.S.-based investment partnership, borrows 80.000.000 at a time when the exchange rate is $1.3343/. The entire principal is to be repaid in three years, and interest is 6.350%...
Study smarter with the SolutionInn App