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JAMB Principles of Accounts 2014 Question 22

Question 22

Final Accounts of a Sole Trader

The excess of sales over cost of goods sold is

  1. A.gross sales.
  2. B.gross profit.
  3. C.net profit.
  4. D.net sales.
Show the answer and explanation

Answer: B (gross profit.)

Explanation

Sales minus cost of goods sold is gross profit.