Which of the following statements regarding gross profit is not true?
A. Gross profit must cover all operating expenses to yield a return for the owner(s) of the business.
B. Gross profit is also called gross margin.
C. Gross profit equals net sales less cost of goods sold.
D. Gross profit less other operating expenses equals income from operations.
E. Gross profit is not calculated on the multiple-step income statement.
Answer: E
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