passwella.
Menu

WAEC Commerce 2005 Question 15

Question 15

Business Calculations

The net profit of a business is determined by

  1. A.deducting cost of goods sold from sales
  2. B.deducting purchases from sales
  3. C.adding commissions received to gross profit
  4. D.deducting all expenses from gross profit and other income.
Show the answer and explanation

Answer: D (deducting all expenses from gross profit and other income.)

Explanation

Net profit = gross profit + other income − expenses.