Income from operations will always result if
A) the cost of goods sold exceeds operating expenses.
B) revenues exceed cost of goods sold.
C) revenues exceed operating expenses.
D) gross profit exceeds operating expenses.

Question

Quizplus · Accepted Answer

Income from operations results when gross profit (revenues minus cost of goods sold) exceeds operating expenses. This means the company has generated enough revenue to cover both the cost of producing its goods and its operating expenses, leading to a positive operating income.

Income from Operations Will Always Result If