Net income is gross profit less
A) financing expenses.
B) operating expenses.
C) other expenses and losses.
D) other expenses.

Question

Quizplus · Accepted Answer

Net income is the profit earned after deducting all operating expenses from gross profit. Financing expenses and other expenses and losses may also be deducted to arrive at net income, but the primary deduction is operating expenses. Therefore, the correct choice is B.

Net Income Is Gross Profit Less