Which of the following "formulas" is incorrect?
A)Gross profit - operating expenses = income before income tax.
B)Sales - cost of goods sold = gross profit.
C)Sales - gross profit = cost of goods sold.
D)Operating expenses - cost of goods sold = gross profit.

Question

Quizplus · Accepted Answer

The correct formula for gross profit is "Sales - Cost of Goods Sold = Gross Profit." Option D incorrectly suggests that operating expenses subtracted from the cost of goods sold equals gross profit, which is not accurate. Gross profit is calculated before operating expenses are considered.

Which of the Following "Formulas" Is Incorrect