Which of the Following "Formulas" Is Incorrect

question 62

Multiple Choice

Which of the following "formulas" is incorrect?

• A)Gross profit - operating expenses = profit before income tax.
• B)Net sales - cost of goods sold = gross profit.
• C)Net sales - gross profit = cost of goods sold.
• D)Operating expenses - cost of goods sold = gross profit.

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Definitions:

Sales Tax

A tax levied on sales of goods and services, typically calculated as a percentage of the purchase price, paid by consumers at the point of sale.

Interest Rates

Charges applied on borrowed money or returns on invested capital, which vary based on the time, inflation, risk, and liquidity.

Tax Reform

Changes made to improve a tax system, often involving amendments to tax laws and policies.

Supply Curve

A chart that illustrates the amount of a product that suppliers are prepared to produce and sell at various price points.