4 ) A corporation is

A) owned by stockholders who enjoy the privilege of limited liability.

B) easily divisible between owners.

C) a separate legal entity with unlimited life.

D) All of the above

5 ) Gross profit is equal to

A) sales minus cost of goods sold.

B) sales minus selling and administrative expenses.

C) sales minus cost of goods sold and selling and administrative expenses.

D) sales minus cost of goods sold and depreciation expense.

6 ) Which of the following is not subtracted in arriving at operating income?

A) Interest expense

B) Cost of goods sold

C) Depreciation

D) Selling and administrative expense