A multi-step income statement ________. A. separates cost of goods sold from operating expenses B. considers interest revenue an operating activity C. is another name for a simple income statement D. combines cost of goods sold and operating expenses

Which of the following best describes a single-step income statement? a.Operating expenses are divided into the subcategories of selling expenses and general expenses. b.Gross sales is shown first, less sales returns and allowances and sales discounts. c.Operating expenses are listed and subtracted from the gross profit to compute income from operations. d.All revenue items and their total are listed first, followed by all expense items and their total.

Where are selling and administrative expenses found on the multiple-step income statement? Da. after net income and before expenses b. before gross profit c. after sales and before gross profit Od. after gross profit

indicate whether the statement describes a multiple-step income statement or asingle-step income statement.a. Multiple-step income statement b. Single-step income statement Commonly reports detailed computations of net sales and other costs and expenses.

First step - you need to understand each individual components of the income statement (also called a Profit & Loss Statement or P&L Statement):  Sales (Revenue)  The sales figure represents the amount of revenue generated by the business. It is calculated as the total of the number of units sold multiplied by the selling price per unit.  The amount recorded here is the total sales, minus any product returns or sales discounts. Cost of Goods Sold This number represents the costs directly associated with making or acquiring your products. Costs include materials purchased from outside suppliers used in the manufacture of your product, as well as any internal expenses directly expended in the manufacturing process. In a service business where you, as the owner, are the only expense in supplying the service, and you do not pay yourself a salary beyond the company profits, your service expense may be zero. However, in a service business where you pay yourself a salary or have…

In a multiple-step income statement for a retail company, all of the following are included in the operating section except a. Sales. b. Cost of goods sold. c. Dividend revenue. d. Administrative and selling expenses.

Assuming that Merchandise business use multiple step income statement. Which of the following will be correct result of Income from operation by the business? a. Gross Margin will be divided by Total Operating expenses b. Total operating expenses will be deducted from Gross Margin c. Gross Margin will be multiplied by Total Operating expenses d. Operating expenses will be deducted from net sales

Calculate gross profit percentage and return on sales ratio

Using the Multiple-step Income Statement, match each definition with the section of the Multiple- step Income Statement: Income from a company's principal operating [ Choose ] activity; determined by subtracting cost of goods sold and operating expenses from net [Choose] sales. The excess of net sales over the cost of goods sold. Multiple-step income statement Other expenses and losses Various revenues, expenses, gains, and losses Other revenues and gains that are unrelated to a company's main line Income from operations Operating expenses Nonoperating activities of operations. Expenses incurred in the process of earning [ Choose ] sales revenue. A nonoperating-activities section of the [ Choose ] income statement that shows expenses and losses unrelated to the company's main line of operations A nonoperating-activities section of the [ Choose ] income statement that shows revenues and gains unrelated to the company's main line of operations. An income statement that shows several […