MANAGEMENT

Detailed explanation-1: -In a Trading and Profit and Loss Account the excess of net sales over the cost of goods sold is called gross profit. Hence, the correct option is C.

Detailed explanation-2: -The excess of net revenue from sales over the cost of merchandise sold is called the gorss profit. Gross profit is presented as a line item on the income statement of retail and manufacturing companies before the operating expenses are deducted.

Detailed explanation-3: -A: The Gross profit is the excess of revenue over the cost of goods sold.

Detailed explanation-4: -The multi-step income statement is used to report revenue and expense activities for a merchandising business. It is an expanded, more detailed version of the single-step income statement. The most significant cost that a merchandise business incurs is the cost of acquiring the inventory that is sold.

Detailed explanation-5: -Excess of gross profit over operating expenses is known as operating profit. Formula for calculating operating profit is: Operating profit = Net profit + Non operating expenses-Non operating incomes.