alleryStart learning →Gross profit is equal to
AGross sales minus taxes
BNet sales plus cost of goods sold
CNet sales minus operating expenses
DNet sales minus cost of goods sold
Answer & Solution
Correct answer: D. Net sales minus cost of goods sold
Gross profit is what remains of net sales after deducting the cost of the goods sold.
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Net income is also calledCharging depreciation on fixed assets has what effect on net profit?Rs 36,000 rent for 12 months is received on 1 January. At the 31 March year end, unearned Investment interest of Rs 12,000 a year is received for nine months only. Accrued income aMachine costing Rs 2,00,000 is bought on 1 October; depreciation 15% a year on cost, year Current assets are Rs 4,80,000 and current liabilities Rs 3,10,000. Net current assets arePurchases Rs 4,00,000, purchase returns Rs 25,000, carriage inwards Rs 5,000. Net cost of Gross sales Rs 6,40,000 and sales returns Rs 15,000. Net sales are