Golden Company had these transactions during the accounting period: Sold merchandise for $600; its cost was $400. Collected $400 from a trade receivable. The account was established in the previous year. Used office supplies of $50.
Golden's profit for the period would be which of the following?
A) $150.
B) $50.
C) $900.
D) $600.

Question

Quizplus · Accepted Answer

To calculate the profit for the period, we need to subtract the cost of goods sold and other expenses from the revenue. 
Revenue: $600 
Cost of goods sold: $400 
Gross profit: $200 
Other expense: $50 
Profit before taxes: $150

Golden Company Had These Transactions During the Accounting Period: Sold