Ask Question
17 February, 10:26

Which of the following statements regarding gross profit is not true? Multiple Choice Gross profit equals net sales less cost of goods sold. Gross profit is also called gross margin. Gross profit less other operating expenses equals income from operations. Gross profit must cover all operating expenses to yield a return for the owner (s) of the business. Gross profit is not calculated on the multiple-step income statement.

+2
Answers (1)
  1. 17 February, 13:00
    0
    Gross profit is not calculated on the multiple-step income statement.

    Explanation:

    Multi-step income statements is a financial document that categorizes revenue, expenditures, and income into different subtitles. The subtitles follow each other in a logical order. The total for each subtitle is indicated as the last line item.

    Categorization makes it easier for users to follow and understand each line in the income statement. A multi-step income shows the income or expense associated with each of a business's core activity.

    Gross profit is obtained by subtracting direct expenses from the net revenue. Direct expenses are the costs of goods sold. Gross profit is income before adjusting for operating expenses. It is usually indicated in the multi-step income statement.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following statements regarding gross profit is not true? Multiple Choice Gross profit equals net sales less cost of goods ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers