Which of the Following Expressions Is Incorrect

question 180

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:

Compound Annual

This term, when incomplete, typically refers to the compound annual growth rate (CAGR), which is a measure of the mean annual growth rate of an investment over a specified time period longer than one year.

Compounded Quarterly

The process of calculating and adding interest to the principal sum of an investment or loan on a quarterly basis, thus increasing the amount on which subsequent interest is calculated.

Semiannually Compounded

Interest calculation method where the interest earned is added to the principal twice per year, effectively growing the investment more quickly than simple interest.

Compound Annual

A calculation of the total compound interest earned or payable over a period of one year.