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:

Weighted Average Cost

A method of calculating the combined cost of goods available for sale by weighting the cost of each item by the quantity purchased.

Bonds Outstanding

The total amount of issued bonds by a corporation or government entity that have not yet been redeemed or reached their maturity date.