Asked by Kerri Daughety on Feb 18, 2024
Verified
The income statement ______.
A) subtracts the cost of goods sold from the total revenue to determine net income
B) subtracts the operating expenses from the total revenue to determine net income
C) subtracts the cost of goods sold and operating expenses from the total revenue to determine net income
D) reports all income with no adjustment for cost of goods sold or operating expenses
A) subtracts the cost of goods sold from the total revenue to determine net income
B) subtracts the operating expenses from the total revenue to determine net income
C) subtracts the cost of goods sold and operating expenses from the total revenue to determine net income
D) reports all income with no adjustment for cost of goods sold or operating expenses
Revenue
The income gained from sales of goods or services.
- Understanding the purpose of an income statement
- Identifying the components of an income statement
- Recognizing the calculation of net income on an income statement
Verified Answer
KB
Katie Benga
Feb 18, 2024
Final Answer :
C
Explanation :
The income statement subtracts both the cost of goods sold and operating expenses from the total revenue to determine net income, reflecting a company's financial performance over a specific period.
Learning Objectives
- Understanding the purpose of an income statement
- Identifying the components of an income statement
- Recognizing the calculation of net income on an income statement