Gross profit is defined as
A)net income before the effect of income taxes.
B)the income generated by the company after subtracting all operating expenses.
C)the difference between total assets and total liabilities.
D)net income less the dividends declared during the period.
E)sales minus cost of goods sold.

Question

Quizplus · Accepted Answer

Gross profit is the difference between sales and cost of goods sold. It represents the amount of revenue that remains after accounting for the direct costs associated with producing the goods or services sold by the company. This measure is commonly used as an indicator of a company's ability to generate profits from its core business operations.

Gross Profit Is Defined as