Which of the following statements regarding gross profit is not true?
A)Gross profit is also called gross margin.
B)Gross profit less other operating expenses equals income from operations.
C)Gross profit is not calculated on the multiple-step income statement.
D)Gross profit must cover all operating expenses to yield a return for the owner(s)of the business.
E)Gross profit equals net sales less cost of goods sold.

Question

Quizplus · Accepted Answer

Gross profit is calculated on the multiple-step income statement, which separates operating revenues and expenses from non-operating items such as gains and losses from investments.

Which of the Following Statements Regarding Gross Profit Is Not