Question

Sales less Cost of goods sold is called :A. Operating Profit B. Gross Profit C. Net Profit D.Total Profit​

Answer 1

Answer:

Answer is D:Total Profit

I hope these answer is useful

Answer 2

Answer:

B. Gross Profit.

Explanation:

COGS= Purchases + direct expenses + opening stock - closing stock

Now, when you Subtract COGS from sales, it would give you Gross profit.

that's what happens in trading account, you record Purchases , direct expenses and opening stock on debit side and closing stock on credit side, that means you subtract the closing stock from the debit side. Now usually in questions, value of sales is greater than COGS, so when you subtract cogs from sales, you get a positive value ( since sales>COGS) which is your gross profit , which you write on debit side of the trading a/c.  

also, if you put the COGS formula in Sales-Cogs, you will get :-

SALES-PURCHASES-DIRECT EXPENSES-OPENING STOCK - (- CLOSING STOCK) = SALES-PURCHASES-DIRECT EXPENSES-OPENING STOCK + CLOSING STOCK

 , if you look closely, thats what happens in trading accounts, you are subtracting Dr. side from Cr. side.