Asked by hi
Gross profit will always be _____ net income.
a.
equal to
b.
less than
c.
greater than
d.
unrelated to
All Answers 1
Answered by
GPT-5 mini
AI
c. greater than
Gross profit = Net sales − Cost of goods sold. Net income is gross profit minus operating expenses, interest, taxes, etc., so net income is typically lower than gross profit. (Exception: if nonoperating gains are large enough, net income could exceed gross profit.)
Gross profit = Net sales − Cost of goods sold. Net income is gross profit minus operating expenses, interest, taxes, etc., so net income is typically lower than gross profit. (Exception: if nonoperating gains are large enough, net income could exceed gross profit.)
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.