Identify which one or more of the following equations is not correct.
A) Stockholders' Equity = Paid- in Capital + Retained Earnings
B) Assets - Liabilities = Stockholders' Equity
C) Revenues - expenses = gross profit
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Gross profit is calculated as revenues minus the cost of goods sold, not revenues minus expenses.

Identify Which One or More of the Following Equations Is