If net income is rising,but both sales and the gross profit percentage remain the same,then:
A)operating expenses are falling.
B)operating expenses are rising.
C)cost of goods sold is falling.
D)cost of goods sold is rising.

Question

Quizplus · Accepted Answer

Since sales and gross profit percentage remain the same, it means that there is no change in the cost of goods sold. If net income is rising, it can only be due to a reduction in operating expenses.

If Net Income Is Rising,but Both Sales and the Gross