For a retailing or manufacturing entity,profit is equal to gross profit less
A)taxation expense.
B)cost of sales.
C)all expenses.
D)all expenses other than cost of sales.

Question

Quizplus · Accepted Answer

Profit for a retailing or manufacturing entity is calculated by deducting all expenses other than the cost of sales from the gross profit. This is because the cost of sales is already accounted for in the gross profit calculation, and only the other expenses need to be subtracted to arrive at the final profit figure. Taxes are usually calculated separately and deducted from the profit after all expenses are taken into account.

For a Retailing or Manufacturing Entity,profit Is Equal to Gross