Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Analysis of Financial Statements

Question:

What is calculated by the formula (Sales-Cost of goods sold)?

Options:

Net Profit

Operating Profit

Total Profit

Gross Profit

Correct Answer:

Gross Profit

Explanation:

The gross profit formula is:
Gross Profit = Revenue – Cost of Goods Sold.