There Will Be Income from Operations If

question 118

Multiple Choice

There will be income from operations if:

• A) revenues are greater than cost of goods sold.
• B) revenues are greater than operating expenses.
• C) gross profit is greater than operating expenses.
• D) cost of goods sold is greater than operating expenses.

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Definitions:

Consumer Surplus

Consumer Surplus is the difference between the highest price a consumer is willing to pay for a good or service and the actual price they pay.

Tax

A mandatory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Reduction

The act of making something smaller or less in amount, degree, or size.

Sellers

Individuals or entities that offer goods or services for sale to consumers or other businesses, participating in economic transactions.