Operating Expenses Are Subtracted from Sales to Determine Gross Profit

question 99

True/False

Operating expenses are subtracted from sales to determine gross profit.

---

Definitions:

Unusual Items

Nonrecurring or unique charges or gains that are not expected to happen regularly, such as costs from lawsuits, restructuring, or natural disasters, that are reported separately in a company's financial statements.

Accounting Principles

Principles that provide the framework upon which accounting standards are constructed.

Common-Sized Financial Statements

Financial statements that present all line items as a percentage of a common base figure, facilitating comparison across periods or companies.

Comparative Statements

Financial statements that present multiple periods of data to compare and analyze changes over time.