The Following Statements Regarding Gross Profit Are True Except

question 244

Multiple Choice

The following statements regarding gross profit are true except:

• 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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