Final answer:
The statement in question is false because gross profit is calculated by deducting the cost of goods sold from sales revenue, not by subtracting operating expenses. To obtain accounting profit, you must subtract operating expenses and other costs from total revenue.
Step-by-step explanation:
The statement 'Sales revenue minus operating expenses equals gross profit' is false. In business accounting, gross profit is calculated by subtracting the cost of goods sold (COGS) from total sales revenue. Gross parofit represents the profit a company makes after deducting the costs associated with making and selling its products, but before subtracting operating expenses.
To determine the accounting profit, or net profit, we subtract operating expenses and other explicit costs from the total revenue. For example, if a company's revenues are $200,000 and the explicit costs are $85,000, the accounting profit would be $115,000. This is different from gross profit, which does not account for operating expenses.
Total revenue can be calculated by multiplying the price of a product by the quantity sold, and it is the overall income generated from sales before any costs are subtracted.