Which of the following is the equation form of gross profit?
A) income − COGS
B) gross profit − operating expenses
C) liabilities + owner's equity
D) operating profit − other revenues and expenses
E) EBT − taxes

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting the cost of goods sold (COGS) from the total revenue or income earned. Thus, the equation form of gross profit is income − COGS.

Which of the Following Is the Equation Form of Gross