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Which of the Following Statements Is True of the Percentage

Question 5

Multiple Choice

Which of the following statements is true of the percentage markup method of indirect proof?


A) It extends the concept of application of funds to include the accumulation of assets and employs a balance sheet formula of sales minus costs equal net worth.
B) It is generally limited to wholesale establishments rather than retail establishments.
C) It requires reliable information regarding opening and closing inventories and the appropriate gross margin.
D) It focuses exclusively on expenditures made in bank deposits.

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