Multiple choice

Directions: Choose the correct option for the given question.

The difference between cost of sales and selling price represents

  1. profit

  2. loss

  3. either (1) or (2)

  4. income

  5. expense
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The difference between selling price and cost of sales is profit if the price is higher, or loss if the cost is higher. Therefore, it represents either a profit or a loss depending on the values.

Keep practicing — related questions