How is income from operations determined?
A)By subtracting the cost of goods sold from sales
B)By subtracting the total operating expenses from sales
C)By subtracting the total operating expenses from gross profit
D)By subtracting selling expenses from operating revenues

Question

Quizplus · Accepted Answer

Income from operations is determined by subtracting total operating expenses from gross profit. Gross profit is calculated by subtracting the cost of goods sold from sales, and then operating expenses are deducted to find the income from operations.

How Is Income from Operations Determined