The following statements regarding gross profit are 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 calculated on the income statement.
D) Gross profit must cover all operating expenses to yield a return for the owner of the business.
E) Gross profit equals net sales less cost of goods sold.

Question

Quizplus · Accepted Answer

Gross profit is calculated on the income statement as the difference between net sales and cost of goods sold. It represents the amount of revenue left over after deducting the direct costs of producing a product or service. Choices A, B, D, and E are all true statements regarding gross profit.

The Following Statements Regarding Gross Profit Are Except