Question on: SS1 Accounting - Identification of Profit And Loss Account Items

What is the difference between revenue and gross profit in a profit and loss account?

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A

Revenue is the money earned by a company, and gross profit is the revenue minus operating expenses.

B

Revenue is the money earned by a company, and gross profit is the revenue minus the cost of goods sold.

C

Revenue and gross profit are the same thing.

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Correct Option: B

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