Net income will result if gross profit exceeds

a- Operating expenses.

b- Cost of goods sold.

c- Purchases.

d- Cost of goods sold plus operating expenses.

19-Under the perpetual system, cash freight costs incurred by the buyer for the transporting of goods is recorded in which account?

a- Freight Expense

b- Inventory

c- Freight-In

d- Freight-out

20-Financial information is presented below:

Operating expenses		$ 49000
Sales revenue		217000
Cost of goods sold		149000

The profit margin ratio would be

a- 0.69

b- 0.31

c- 0.91

d- 0.09

21-Financial information is presented below:

Operating expenses	$ 20000
Sales returns and allowances	5000
Sales discounts	3000
Sales revenue	140000
Cost of goods sold	85000

The gross profit rate would be

a- 0.39

b- 0.36

c- 0.34

d- 0.64