39. Which of the following statements concerning multi-step income statements is true?

A. On a multi-step income statement, the difference between sales revenue and cost of goods sold is called net margin.

B. Multi-step income statements are less informative and more confusing than single step statements

C. Multi-step income statements make companies appear more profitable than single step statements

D. On a single step income statement, the difference between sales revenue and cost of goods sold is called gross margin

E. None are true

40.A company operates a perpetual inventory system, and has 100 units on hand at January 1 that cost $15 each. During the year the company purchases 100 units of inventory at $20 per unit. The goods from the seller are shipped FOB destination point. The freight charge is $ 100. What is the per unit cost of the inventory purchased, if there are 50 units remaining at year end?

A. $18.00 B. $20.00 C. $21.00 D.17.50 E. None are correct

50. Which of the following does NOT represent the fundamental accounting equation? (A is assets; L is liabilities; SE is stockholder equity; RE is retained earnings; cc is contributed capital)

1. A-L=SE
2. A=L+SE
3. A-L=RE+CC
4. A=L+RE+CC

E. None are incorrect