Which of the Following Is Subtracted from Gross Profit to Arrive

question 10

Multiple Choice

Which of the following is subtracted from Gross profit to arrive at Net profit?

• A)Cost of goods available for sale
• B)Operating expenses
• C)Cost of sales
• D)Sales discounts and Sales returns and allowances

---

Definitions:

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation.

Stockholders' Rights

Refers to the legal entitlements inherent to the ownership of a corporation's stock, including voting on corporate matters, receiving dividends, and sharing in the distribution of assets upon dissolution.

Creditors' Rights

The legal rights and remedies available to creditors to collect debts owed to them.

Amount Owed

The total sum of money that is due to be paid to another party or lender.