188k views
5 votes
LO 2.1Which of the following represents the components of the income statement for a manufacturing business?

Sales Revenue – Cost of Goods Sold = gross profit
Service Revenue – Operating Expenses = gross profit
Service Revenue – Cost of Goods Manufactured = gross profit
Sales Revenue – Cost of Goods Manufactured = gross profit

1 Answer

3 votes

Answer:

Sales Revenue – Cost of Goods Sold = gross profit

Step-by-step explanation:

In order to determine the income statement components, the following component is shown

Gross profit = Sales revenue - the cost of goods sold

where,

Sales revenue represents the sales of the business organization

And, the cost of goods sold would be

= Opening inventory + Purchase - ending inventory

By deducting the cost of goods sold from the sales revenue the gross profit can arrive

User LTheriault
by
7.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.