Multiple Choice QuestionGross income or profit equals revenues minus the ______ required to generate the revenue.Multiple choice question.salaries and expensescost of goods soldowner's equityresearch and development
Question
Multiple Choice QuestionGross income or profit equals revenues minus the ______ required to generate the revenue.Multiple choice question.salaries and expensescost of goods soldowner's equityresearch and development
Solution
The correct answer is "cost of goods sold". Gross income or profit is calculated by subtracting the cost of goods sold from the revenues. This cost includes all the direct costs associated with producing a good or delivering a service. Salaries and expenses, owner's equity, and research and development are not subtracted from revenues to calculate gross income or profit.
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