When You Subtract Cost of Revenues from Revenues Obtained by Selling

question 39

Multiple Choice

When you subtract cost of revenues from revenues obtained by selling the firm's products,you obtain ________.

• A) net income
• B) gross profit
• C) accounts payable
• D) interest expense

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Definitions:

Equity Method

An accounting technique used when an investor holds significant influence over, but not majority ownership of, another company, incorporating the investor's share of the profits and losses.

Equity Method

The equity method is a type of accounting used for investments, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the net assets of the investee.

Noncontrolling Interest

The portion of equity (ownership) interest in a subsidiary not attributable to the parent company.