Which of the Following Expressions Is Incorrect

question 95

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:

Income Statements

Reports that detail the revenue, expenses, and profitability of a company over a defined accounting period, showing its financial performance.

Service Departments

Units within an organization that provide support services to other departments, rather than producing goods or services for external customers.

Generate Revenues

The process of earning income from business activities, such as sales of goods and services.

Joint Costs

Expenses that are incurred in the process of producing two or more products up to the point where the products are separately identifiable.