Which of the following is an incorrect statement? Revenue - Operating Income = Gross Margin Revenue = Price * Qty sold or TR = P*Q EAT = EBT - Taxes Income - Expenses = Operating Income Revenue - CGS = Gross Profit
Which of the following is an incorrect statement? Revenue - Operating Income = Gross Margin Revenue = Price * Qty sold or TR = P*Q EAT = EBT - Taxes Income - Expenses = Operating Income Revenue - CGS = Gross Profit
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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QUESTION 22
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Which of the following is an incorrect statement?
Revenue - Operating Income = Gross Margin
Revenue = Price * Qty sold or TR = P*Q
EAT = EBT - Taxes
Income - Expenses = Operating Income
Revenue - CGS = Gross Profit
Expert Solution
Step 1
Gross margin is the amount earned by the firm after deducting COGS from revenue.
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