Gross profit is calculated by
A) subtracting total expenses from total revenues.
B) subtracting cost of goods sold from net sales.
C) subtracting the ending inventory from cost of goods sold.
D) adding cost of goods sold to net sales.

Question

Quizplus · Accepted Answer

Gross profit is the difference between net sales and the cost of goods sold. Therefore, option B is the correct answer as it subtracts the cost of goods sold from the net sales.

Gross Profit Is Calculated by