Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 1 - No. 45)

What is the formula for gross profit?

Gross Profit = Sales Revenue + Cost of Sales

Gross Profit = Sales Revenue - Cost of Sales

Gross Profit = Cost of Sales - Sales Revenue

Gross Profit = Operating Expenses - Cost of Sales

Gross profit is calculated as sales revenue minus the cost of goods sold.