The Following Statements Regarding Gross Profit Are True Except

question 40

Multiple Choice

The following statements regarding gross profit are true except:

• A)Gross profit is also called gross margin.
• B)Gross profit less other operating expenses equals income from operations.
• C)Gross profit is not calculated on the multiple-step income statement.
• D)Gross profit must cover all operating expenses to yield a return for the owner of the business.
• E)Gross profit equals net sales less cost of goods sold.

---

Definitions:

Client's Claim

A formal request or demand made by a client, often regarding compensation or rectification in the context of legal representation.

Memorandum

A written document used within an organization to communicate or record details about a specific topic, decision, or instruction.

Motion

A procedural request or application presented by an attorney to the court on behalf of a client.

Letter

A written message that can be handwritten or printed on paper. It is usually sent to the recipient via mail or delivery.