Question

3. Net income = gross profits - (cost to bring goods into store + ___)

A. long-term liabilities
B. total assets
C. operating expenses
D. cost of merchandise sold

Answer 1

Answer: D & C

Explanation:

The net Income of the business is represented as

Net profits or income = Net sales revenue (gross income) – Cost of goods and services sold – Administration, operating, marketing, and advertising costs, taxes, interests, and other expenses.

Here C is an option because we need to take operating expenses into consideration but if you consider cost of goods brought into store as operating then option changes to D.

D represents the sales which helps us determine the net income of the business.

Answer 2

c because you are trying to figure out your profit so you take what you made and subtracted by all of your expenses