JAMB Accounts Principles of Accounts 2018 Paper

Concept:The excess of sales over cost of goods sold is called gross profit.Explanation:Cost of goods sold is the direct cost of producing or buying the goods that were sold.Sales is the total revenue from those goods.When the cost of goods sold is subtracted from sales, the result is the profit made before other expenses are considered.This is expressed as:$$\text{Gross Profit} = \text{Sales} - \text{Cost of Goods Sold}$$Gross profit does not include other operating expenses, taxes, or interest.Answer:B. gross profit