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Question

Formula of Operating profit is equal to ___________.
  1. Net profit + Non operating expenses - Non operating incomes
  2. Net profit + Non operating expenses + Non operating incomes
  3. Net profit - Non operating expenses - Non opertaing incomes
  4. Net profit - Non operating expenses/ Non operating incomes

A
Net profit + Non operating expenses + Non operating incomes
B
Net profit - Non operating expenses - Non opertaing incomes
C
Net profit - Non operating expenses/ Non operating incomes
D
Net profit + Non operating expenses - Non operating incomes
Solution
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Operating profit is the profit earned through the normal operations and activities of the business. Operating profit is the excess of operating revenue over operating expenses. Operating profit is calculated as:

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