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Which of the following expressions is incorrect?

A. Gross profit less Operating expenses equals Net income.

B. Sales less Cost of goods sold less Operating expenses equals Net income.

C. Net income plus Operating expenses equals Gross profit.

 

D. Operating expenses less Cost of goods sold equals Gross profit.

 

Accounting Financial Accounting Financials Finance
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Question added by Sultan Alghamdi
Date Posted: 2016/02/19
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MUHAMMAD ETIMAD SYED
by MUHAMMAD ETIMAD SYED , Senior Financial Accountant , TA'AZ Group of Companies

Option D is incorrect. When you deduct Operating Expenses from CGS you will not get the Gross Profit.

مطلق سالم عقيل alanazi
by مطلق سالم عقيل alanazi , كاشير , سوبر ماركت الرجاء

D. Operating expenses less Cost of goods sold equals Gross profit.

 

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