Which of the Following Expressions Is Incorrect

question 51

Multiple Choice

Which of the following expressions is incorrect?

• A) Gross profit - Operating expenses = Net income
• B) Sales revenue - cost of goods sold - Operating expenses = Net income
• C) Net income + Operating expenses = Gross profit
• D) Operating expenses - Cost of goods sold = Gross profit

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Definitions:

Balance Sheet

A financial report that provides a snapshot of a company's financial position by listing its assets, liabilities, and equity at a particular point.

Outstanding Voting Stock

The total shares of a corporation's stock that are currently owned by shareholders, including those with voting rights.

Long-Term Investment

Investments held for an extended period, typically longer than one year, to achieve sustained growth or income.

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.