The Following Statements Regarding Gross Profit Are True Except

question 229

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 reported on the multiple-step income statement.
• D)Gross profit must cover all operating expenses to yield a return for the owner(s)of the business.
• E)Gross profit equals net sales less cost of goods sold.

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