Gerald Wants to Find Out the Net Income of His

question 130

Multiple Choice

Gerald wants to find out the net income of his business for the last quarter. He deducts the cost of goods sold from the revenue earned during that period and then deducts the operating expenses from the gross profit. If Gerald decides to subtract the salary of his employees from the operating expenses before deducting the operating expenses from the gross profit, which of the following expenses would he be deducting?

• A) Testamentary expenses
• B) Administrative expenses
• C) Selling expenses
• D) Accrued expenses