Question

Gross profit equals the difference between sales revenue and cost of goods sold plus operating expenses. net income and operating expenses. sales revenue and operating expenses. sales revenue and cost of goods sold.

Answer 1

Answer:

Gross profit equals the difference between sales revenue and cost of goods sold.

Explanation:

The gross profit is calculated by subtracting total cost of goods sold from total sales. Both the total sales and cost of goods sold are found on the income statement.

Gross profit = Sales revenue - cost of goods sold.

It is one of three profit metrics used in business statement reports