An account used to calculate gross profit on trading, prior to the profit and loss account is a/an ________ account.
A)cost of sales
B)inventory
C)contra
D)trading

Name: An account used to calculate gross profit on trading, prior to the profit and loss account is a/an ________ account. A)cost of sales B)inventory C)contra D)trading
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Question

Quizplus · Accepted Answer

The trading account is used to calculate the gross profit by comparing sales and cost of goods sold before transferring the result to the profit and loss account.

An Account Used to Calculate Gross Profit on Trading, Prior