Which of the following expressions is INCORRECT?
A) Gross profit - operating expenses = profit.
B) Sales - cost of goods sold - operating expenses = profit.
C) Profit + operating expenses = gross profit.
D) Operating expenses - cost of goods sold = gross profit.

Question

Quizplus · Accepted Answer

Gross profit is calculated as sales minus the cost of goods sold, not operating expenses minus cost of goods sold. Operating expenses are subtracted from gross profit to determine net profit, not to calculate gross profit.

Which of the Following Expressions Is INCORRECT