Question

On the multiple-step income statement, "gross profit" (also known as "gross margin") is calculated as follows: Select one: a. Net revenues less cost of goods sold b. Net revenues less cost of goods sold less operating expenses c. Net revenues less cost of goods sold less operating expenses less income tax expense d. Net revenues less all expenses

Answer 1

Answer:

Option A Net revenues less cost of goods sold

Explanation:

The IASB sets the Financial reporting framework which states that the gross profit will be derived from the deduction of cost of goods sold from the Net revenues. So the correct option is Option A.