Which of the Following Is Not Subtracted to Arrive at Operating

question 145

Multiple Choice

Which of the following is not subtracted to arrive at operating profit?

• A) Interest expense
• B) Cost of goods sold
• C) Amortization
• D) Selling and administration expense

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Definitions:

Increase in Demand

A situation where more consumers are willing and able to purchase a good or service at each possible price, leading to a shift in the demand curve to the right.

Government Raise

An increase in government revenue, often achieved through raising taxes or adjusting fiscal policies, to support government spending.

Tax

A compulsory financial charge imposed by a governmental organization in order to fund various public expenditures.

Per Capita Consumption

The average consumption of goods and services per person within a particular population.