Which financial statement(s)do you need to calculate the gross profit ratio?
A)only the income statement
B)only the balance sheet
C)both the income statement and the balance sheet
D)both the statement of cash flows and the income statement

Question

Quizplus · Accepted Answer

The gross profit ratio is calculated using the gross profit and revenue figures, which are both found on the income statement. The formula for the gross profit ratio is (Gross Profit / Revenue) x 100. The balance sheet, statement of cash flows, and other financial statements are not required for this calculation.

Which Financial Statement(s)do You Need to Calculate the Gross Profit