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 reported 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.

Question

Quizplus · Accepted Answer

Gross profit is reported on the multiple-step income statement as the first subtotal, after net sales and cost of goods sold.

The Following Statements Regarding Gross Profit Are True Except