The following statements regarding gross profit are true except:
A) Gross profit less other operating expenses equals income from operations.
B) Gross profit is not calculated on the multiple-step income statement.
C) Gross profit equals net sales less cost of goods sold.
D) Gross profit is also called gross margin.
E) Gross profit must cover all operating expenses to yield a return for the owner of the business.

Question

Quizplus · Accepted Answer

Gross profit is calculated on both the single-step and multiple-step income statements.

The Following Statements Regarding Gross Profit Are True Except