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:

Life Insurance Contract

A legal agreement between an insurance company and an individual, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.

Insurer's Liability

Represents the maximum amount a insurance company is obligated to pay to the insured under the terms of an insurance policy.

Insured

A person or entity covered by an insurance policy, receiving protection against specified risks in exchange for premium payments.

Proof of Loss

A formal statement made by a policyholder to an insurance company detailing a claimed loss's circumstances and amount.