View the step-by-step solution to:

How does net income differ from operating profit?

How does net income differ from operating profit?

A.Operating profit includes interest expense and net income does not.

B.The difference is the amount of tax expense.

C.Net income represents the firm's profit after consideration of all revenue and expense reported for an accounting period, whereas operating profit only considers sales revenue and cost of goods sold.

D.Operating profit is calculated before interest expense, other income or expenses, and taxes, whereas net income includes all of those items.

Top Answer

Option D :- Operating profit is calculated before... View the full answer

Sign up to view the full answer

Other Answers

B.The difference is... View the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online