Reference no: EM132818069

Problem 1: The excess of net sales over the cost of goods sold is called

a. gross profit.                       C. operating profit.

b. merchandising income.            d. profit.

Problem 2: After all adjusting entries are posted, the balances of all asset, liability, income expense accounts correspond exactly to the amounts in the income, and

a. financial statements.              C. unadjusted trial balance.

b. post-closing trial balance.         d. worksheet trial balance.