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

Question

Quizplus · Accepted Answer

Income from operations is determined by subtracting the total operating expenses from gross profit. This gives an indication of the profitability of the core operations of a business before taking into account other expenses and taxes.

How Is Income from Operations Determined