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:

Accounts

Records within accounting that track financial transactions categorized by type, such as assets, liabilities, equity, revenue, and expenses.

Independent Contractor

An individual or entity engaged in a work performance agreement who is not considered an employee and does not receive employee benefits or protections.

Invoice

A document issued by a seller to a buyer that specifies the products or services being sold, their quantity, and the price.

Transaction

A transaction is an agreement or exchange between two or more parties that is enforceable by law.