1)

A company has net sales of $80,000, cost of goods sold of $60,000, and operating expenses of $25,000. Based on this information, the companys gross profit margin is:

80%

42%

75%

25%

2)

Gross profit does not appear

on the income statement if the periodic inventory system is used because it cannot be calculated.

to be relevant in analyzing the operation of a merchandising company.

on a multiple-step income statement.

on a single-step income statement.

3)

Effective and efficient operations can be a result of a strong system of internal controls.

True

False