Question

Operating profit stated as a subtotal on a companies income statement before all general and administrative expenses.

• A. True
• B. False

Answer 1

The correct option is B False

Operating profit is the profit earned through the normal operations and activities of the business. However, while calculating operating profit expenses which are of financial nature are not taken into consideration. Operating profit is the excess of operating revenue over operating expenses. Operating profit stated as a subtotal on a companies income statement after all general and administrative expenses.