The correct answer is: D. None of the above
Gross profit is calculated by subtracting the cost of goods sold from the sales revenue. Net profit is calculated by subtracting the total expenses from the gross profit.
Interest and indirect expenses are both expenses. Therefore, adding interest or indirect expenses to net profit will not result in gross profit.
Here is a more detailed explanation of each option:
- Option A: It can be converted into gross profit by adding interest to it.
This is incorrect because interest is an expense, not revenue. Therefore, adding interest to net profit will not result in gross profit.
- Option B: It can be converted into gross profit by adding indirect expenses to it.
This is also incorrect because indirect expenses are also expenses, not revenue. Therefore, adding indirect expenses to net profit will not result in gross profit.
- Option C: Both A and B.
This is incorrect because both options are incorrect.
- Option D: None of the above.
This is the correct answer because none of the options are correct.