The cost of goods sold is deducted from revenue to calculate the gross profit in the Statement of Profit or Loss and Other Comprehensive Income.

Economics
The cost of goods sold is deducted from revenue to calculate the gross profit in the Statement of Profit or Loss and Other Comprehensive Income.

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Answer

True

The statement is True.

Gross profit is calculated by subtracting the cost of goods sold from revenue. This calculation is a standard component of the Statement of Profit or Loss (also known as the Income Statement), which is part of the Statement of Profit or Loss and Other Comprehensive Income.

GrossProfit=Revenue−CostofGoodsSoldGross Profit = Revenue - Cost of Goods Sold

\text{True}

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Quick Answer

The statement is True. Gross profit is calculated by subtracting the cost of goods sold from revenue.

The cost of goods sold is deducted from revenue to calculate the gross profit in the Statement of Profit or Loss and Other Comprehensive Income.
Economics

This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.

ScanSolve AI Answer
The statement is True. Gross profit is calculated by subtracting the cost of goods sold from revenue. This calculation is a standard component of the Statement of Profit or Loss (also known as the Income Statement), which is part of the Statement of Profit or Loss and Other Comprehensive Income. Gross Profit = Revenue - Cost of Goods Sold True