Which of the following is subtracted from net sales revenue to arrive at gross profit on a multi-step income statement?
A) selling expense
B) cost of goods sold
C) sales discounts
D) all of the above

Question

Quizplus · Accepted Answer

Cost of goods sold is subtracted from net sales revenue to arrive at gross profit on a multi-step income statement. Selling expenses and sales discounts are not subtracted at this stage, but are included in later calculations to arrive at net income.

Which of the Following Is Subtracted from Net Sales Revenue