Question

Which statement is true regarding the calculation of income earned by a service business?
The net sales amount is calculated by deducting sales returns and discounts from total sales.
Deducting cost of goods sold from net sales gives the goods available for sale.
Gross profit is the final profit of the business.
Salaries are a part of operating expenses.
Operating expenses are deducted from gross profit to determine the net profit or net income of the business.