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How does net income differ from operating profit

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Reference no: EM132736642

Problem 1: How does net income differ from operating profit?

A) 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.

B) The difference is the amount of tax expense.

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

D) Operating profit includes interest expense and net income does not

Reference no: EM132736642

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