Gross profit is equal to
A) profits plus depreciation.
B) revenues - expenses.
C) earnings before taxes minus taxes payable.
D) sales - cost of goods sold.

Name: Gross profit is equal to A) profits plus depreciation. B) revenues - expenses. C) earnings before taxes minus taxes payable. D) sales - cost of goods sold.
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Question

Quizplus · Accepted Answer

Gross profit is calculated by subtracting cost of goods sold from total sales revenue. It does not include any expenses or taxes, as indicated in the other answer choices.

Gross Profit Is Equal to