Question

Net income plus operating expenses is equal to a.sales b.gross profit c.cost of goods sold d.cost of merchandise

Answer 1

Answer:

b. gross profit

Explanation:

As we know that

Net income = Gross profit - operating expenses

where,

Gross profit = Sales - the cost of goods sold

And, The operating expense deals with the day to day business activities like commission on sales, payroll, etc

So, the gross profit equals to

Gross profit = Net income + operating expenses

Therefore, the option b is correct