Question

Gross profit is:

• A. Cost of goods sold + Opening stock
• B. Sales – cost of goods sold
• C. Sales – Purchases
• D. Net profit – expenses

Answer 1

The correct option is B

Sales – cost of goods sold

Answer: B) Sales – cost of goods sold

Gross profit is obtained by subtracting the cost of goods sold from the revenue or sales made by the business during an accounting period.

Also read:

• MCQs on Balance Sheet
• MCQs on Trial Balance
• Difference Between Capital Expenditure and Revenue Expenditure

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