What is subtracted from Gross Profit to arrive at Net Income? a. Operating Expenses b. Cost of...
Question:
What is subtracted from Gross Profit to arrive at Net Income?
a. Operating Expenses
b. Cost of Merchandise Sold
c. Sales
d. None of the above
Income:
Businesses carry out transactions to earn returns by effectively using the funds & assets available with it. These profits are categorized in different sections in the income statement as per their deducibility, like gross, operating, or net available income.
Answer and Explanation: 1
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View this answerThe correct answer is Option a.
These are selling, admin & other general expenses made by the company in the process of manufacture & sale of...
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What Is Net Income? - Definition & Formula
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Chapter 70 / Lesson 5
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Explore the definition and examples of net income. Understand the differences between gross and net income and learn how to use the net income formula.
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