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WorksheetsComputation of Gross Profit
Total questions: 10
Worksheet time: 5mins
The gross profit rate of the entrepreneurial venture is computed by dividing the cost of goods sold by net sales.
True
False
The gross profit rate provides information on the cost ratio of the business.
True
False
Mr. Q is a practicing Doctor of Medicine. During the month of March 2019 he received Professional Fees amounting to P 1,000,000 and total expenses of P250,000. The net income of Mr. Q is P 750,000.
True
False
Profit is the money received from customer in exchange of
products given to customer.
True
False
The government is not interested in financial statements since it is not a party to any of the transactions of the business.
True
False
The net profit margin rate presents the general perspective of the operating performance of the business.
True
False
In normal situation, it is favorable for the business to have high inventory.
True
False
Preparation & presentation of the financial statements of the entity is the primary responsibility of an accountant.
True
False
In evaluating the profitability of the entrepreneurial venture the evaluation must focus on the information reflected on the face of the balance sheet.
True
False
The operating profit margin rate indicates information on the percentage of operating expenses on the net sales.
True
False
