Explanation:

Gross profit is a measure of a company's profitability from its core business activities, before accounting for operating expenses and taxes:

- Gross profit is determined by subtracting the cost of goods sold (COGS) from sales revenue. This metric provides insight into the efficiency of production and sales operations.

- Option 1: Cost of goods sold + Opening stock - Incorrect, as it does not factor in sales revenue and does not represent gross profit.

- Option 2: Sales less Cost of goods sold - Correctly defines gross profit, indicating the income left after deducting production costs from sales. Correct Answer

- Option 3: Sales less Purchases - Incorrect, since it doesn't account for direct costs tied to the cost of goods sold.

- Option 4: Net profit less Expenses of the period - Incorrect, as this pertains to the calculation of net profit, not gross profit.