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The excess of sales over cost of goods sold is?

Accounts - Principles of Accounts
JAMB 2018

The excess of sales over cost of goods sold is?

  • A. gross sales
  • B. gross profit
  • C. net profit
  • D. net sales
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Correct Answer: Option B
Explanation

The gross profit formula is calculated by subtracting total cost of goods sold from total sales.Both the total sales and cost of goods sold are found on the income statement. Gross profit is a way to compare the cost of the goods your company sells and the income derived from those goods. It can be gotten as;

Gross profit = total sales - cost of goods sold


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WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC offline past questions - with all answers and explanations in one app - Download for free