Which of the following expressions is incorrect? Gross profit – operating expenses = net income Sales – cost of goods sold – operating expenses = net income Operating expenses – cost of goods sold = gross profit Net income + operating expenses = gross profit

Which of the following expressions is incorrect? Gross profit – operating expenses = net income Sales – cost of goods sold – operating expenses = net income Operating expenses – cost of goods sold = gross profit Net income + operating expenses = gross profit

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4MC: Which of the following represents the components of the income statement for a service business...

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Question

Which of the following expressions is incorrect?

	Gross profit – operating expenses = net income
	Sales – cost of goods sold – operating expenses = net income
	Operating expenses – cost of goods sold = gross profit
	Net income + operating expenses = gross profit

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