Which statement is TRUE?

Question

Quizplus · Accepted Answer

The excess of sales revenue over cost of goods sold is called gross profit because operating expenses have not yet been subtracted is a true statement. Option A is incorrect because most businesses use the perpetual inventory system. Option C is incorrect because most companies use either the FIFO or LIFO method for inventory valuation. Option D is incorrect because most companies in the United States follow Generally Accepted Accounting Principles (GAAP), not International Financial Reporting Standards (IFRS).

Which Statement Is TRUE