Net income will result if gross profit exceeds
A)cost of goods sold.
B)operating expenses.
C)purchases.
D)cost of goods sold plus operating expenses.

Question

Quizplus · Accepted Answer

Net income results when gross profit exceeds operating expenses, as gross profit is the amount left after subtracting the cost of goods sold from revenue, and net income is what remains after all expenses, including operating expenses, are subtracted from gross profit.

Net Income Will Result If Gross Profit Exceeds