Gross profit appears on a
A)single-step income statement.
B)classified balance sheet.
C)multiple-step balance sheet.
D)multiple-step income statement.
E)single-step balance sheet.

Question

Quizplus · Accepted Answer

Gross profit is a component of the multiple-step income statement which presents the company's revenues and expenses in separate sections, providing more detailed information about the sources of income and the cost of goods sold. The gross profit is calculated by subtracting the Cost of Goods Sold from the Net Sales revenue, so it helps in analyzing the profitability of a business's core operations.

Gross Profit Appears on a