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#cfa-level-1 #reading-25-understanding-income-statement
Question
Besides gross profit, another important subtotal which may be shown on the income statement is [...]
Answer
operating profit (or, synonymously, operating income)

Tags
#cfa-level-1 #reading-25-understanding-income-statement
Question
Besides gross profit, another important subtotal which may be shown on the income statement is [...]
Answer
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Tags
#cfa-level-1 #reading-25-understanding-income-statement
Question
Besides gross profit, another important subtotal which may be shown on the income statement is [...]
Answer
operating profit (or, synonymously, operating income)
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Besides gross profit, another important subtotal which may be shown on the income statement is operating profit (or, synonymously, operating income)

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2. COMPONENTS AND FORMAT OF THE INCOME STATEMENT
rvices that were provided. In summary, gross profit is the amount of revenue available after subtracting the costs of delivering goods or services. Other expenses related to running the business are subtracted after gross profit. <span>Another important subtotal which may be shown on the income statement is operating profit (or, synonymously, operating income). Operating profit results from deducting operating expenses such as selling, general, administrative, and research and development expenses from gross profit. Operating profit reflects

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