Question

Gross profit is calculated as:

• A. Sales revenue plus sales returns less cost of sales
• B. Sales revenue less sales returns plus cost of sales
• C. Sales revenue less sales returns less discount allowed less cost of sales
• D. Sales revenue less sales returns less cost of sales

Answer 1

The correct option is D

Sales revenue less sales returns less cost of sales

Sales revenue less sales returns less cost of sales = Gross profit.