Which of the following "formulas" is incorrect?
A) Gross profit - operating expenses = income before income tax.
B) Net sales - cost of goods sold = gross profit.
C) Net sales - gross profit = cost of goods sold.
D) Operating expenses - cost of goods sold = gross profit.

Question

Quizplus · Accepted Answer

Gross profit is calculated as net sales minus the cost of goods sold, not operating expenses minus the cost of goods sold.

Which of the Following "Formulas" Is Incorrect