Gross profit does not appear A)on a merchandising company income statement. B)on a service company income statement. C)to be relevant in analyzing the operation of a merchandising company. D)on the income statement if the periodic inventory system is used because it cannot be calculated.

Question

Quizplus · Accepted Answer

Gross profit does not appear on a service company income statement because service companies do not have cost of goods sold, which is necessary to calculate gross profit.

Gross Profit Does not Appear