Which of the following is true of gross and net income

This statement is incorrect because gross income is calculated prior to any deductions or expenses. It represents the total revenue earned, not what remains after costs have been accounted for. Therefore, gross income cannot be defined as being calculated after expenses.

This option is misleading as it reverses the definitions of net income. Net income is actually the earnings that remain after all expenses, taxes, and deductions have been subtracted from gross income. Thus, referring to net income as income before expenses is fundamentally incorrect.

This statement is incorrect because net income cannot exceed gross income. By definition, net income is derived from gross income after all expenses have been deducted. Therefore, net income is always less than or equal to gross income, depending on the expenses incurred.