Gross Profit Is Calculated as ________

question 150

Multiple Choice

Gross profit is calculated as ________.

• A) sales revenue less sales discounts and allowances
• B) sales revenue less operating expenses
• C) net sales revenue less sales discounts
• D) net sales revenue less cost of goods sold

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Definitions:

Owners' Equity

The total value that the owners or shareholders have invested in a company minus any liabilities the company has.

Assets

Resources owned by an individual or business with economic value expected to provide future benefits.

Liabilities

Financial obligations or debts that a company or individual is responsible for repaying.