PRC-1 · Chapter 10 · Question 22 of 100
Which of the following equations correctly defines 'Gross Profit'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Net Sales - Cost of Goods Sold
Explanation
Gross profit is the profit a company makes after deducting the costs associated with making and selling its products (Cost of Goods Sold) from its Net Sales revenue.
More Preparation of Financial Statements MCQs
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