Which of the Following Statements Regarding Gross Profit Is Not

question 44

Multiple Choice

Which of the following statements regarding gross profit is not true?

• A)Gross profit is also called gross margin.
• B)Gross profit less other operating expenses equals income from operations.
• C)Gross profit is not calculated on the multiple-step income statement.
• D)Gross profit must cover all operating expenses to yield a return for the owner(s)of the business.
• E)Gross profit equals net sales less cost of goods sold.

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