Gross profits are defined as
A) operating profits minus depreciation.
B) operating profits minus cost of goods sold.
C) sales revenue minus operating expenses.
D) sales revenue minus cost of goods sold.

Question

Quizplus · Accepted Answer

Gross profits are the profits earned after deducting the cost of goods sold from the sales revenue. Options A and C incorrectly include operating expenses or depreciation in the calculation of gross profits. Therefore, option D is the best choice as it correctly defines gross profits.

Gross Profits Are Defined as