Question

Excess of gross profit over operating expenses is known as __________.

• A. operating profit
• B. gross profit
• C. net profit
• D. after tax profit

Answer 1

The correct option is A operating profit

Operating profit is the profit earned through the normal operations and activities of the business. Excess of gross profit over operating expenses is known as operating profit. Formula for calculating operating profit is:
Operating profit = Net profit + Non operating expenses - Non operating incomes.