Accounting for IGCSE & O level - Final Statements (Section 9 - No. 41)
What does the gross profit represent?
Total profit before any expenses are deducted.
Profit after deducting the cost of goods sold.
Profit after deducting all operating expenses.
Profit after deducting taxes.
Explication
Gross profit is the profit remaining after subtracting the cost of goods sold from sales revenue.