Question

What are operating profits in profit and loss account?

Answer 1

Gross Profit - Operating Expenses + Operating Income= Operating Profits

Answer 2

Explanation:

• Operating Profit = Gross Profit - Operating Expenses - Depreciation and Amortization. However, like gross profit, operating profit does not account for the cost of interest payments on debts, tax expense, or additional income from investments. Operating profit reflects the profitability of a company's operations.