The financial statement that subtracts cost of goods sold from revenue to arrive at gross profit is is a(n) ______.
A)balance sheet
B)cash flow statement
C)entrepreneurs scorecard
D)income statement

Question

Quizplus · Accepted Answer

The income statement is the financial statement that subtracts cost of goods sold from revenue to arrive at gross profit. The balance sheet shows the company's assets, liabilities, and equity. The cash flow statement tracks the flow of cash in and out of the company. The entrepreneur's scorecard is a tool used to measure the company's success and progress towards goals.

The Financial Statement That Subtracts Cost of Goods Sold from Revenue