McCartney Consulting Group is a management-consulting firm that provides its expertise to businesses that employ its services.Since it does not hold an inventory of goods or produce any goods itself:
A)its balance sheet will not record any current assets.
B)its revenue will equal its net income.
C)it is unlikely to have any operating expenses.
D)its gross profit could be identical to its net revenue.

Question

Quizplus · Accepted Answer

Since McCartney Consulting Group does not produce goods, it does not have a cost of goods sold, meaning its gross profit (revenue minus cost of goods sold) could be identical to its net revenue.

McCartney Consulting Group Is a Management-Consulting Firm That Provides Its