The income statement shows gross profit which is equal to
A)gross revenues minus returns and allowances.
B)operating income minus interest.
C)operating income minus operating expenses.
D)earnings before taxes minus taxes.
E)net sales minus cost of goods sold.

Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting cost of goods sold from net sales. Therefore, the answer is E: net sales minus cost of goods sold.

The Income Statement Shows Gross Profit Which Is Equal to