Financial Statements – I · Class 11 · CBSE · Commerce Accountancy
Gross Profit is best defined as:
Practice question from Financial Statements – I (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-6711EA
Gross Profit is best defined as:
- A.Excess of net sales over total operating expenses
- B.Excess of operating revenue over cost of goods sold
- C.Excess of revenue from operations over cost of revenue from operations (Cost of Goods Sold)Correct answer
- D.Net income available to equity shareholders before tax
Solution
Gross profit represents the excess of revenue from operations (net sales) over the cost of goods sold (cost of revenue from operations). It reflects the trading result of the business.
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