Asked by Quintin Volpe on Jun 20, 2024
Verified
Which of the following items is not reported as an expense on the income statement?
A) Interest expense.
B) Dividends paid.
C) Selling,general,and administrative expenses.
D) Cost of goods sold.
Income Statement
A financial statement that shows a company's revenues, expenses, and profit over a specific period.
Dividends Paid
The total amount of dividend payments made to shareholders during a specific period, often reported quarterly or annually.
- Acknowledge the procedure for reporting revenue and expenses, along with their impact on net income and financial disclosures.
Verified Answer
PM
peerapol monkthongJun 25, 2024
Final Answer :
B
Explanation :
Dividends paid are not reported as an expense on the income statement. While interest expense, selling, general, and administrative expenses, and cost of goods sold are all reported as expenses.
Learning Objectives
- Acknowledge the procedure for reporting revenue and expenses, along with their impact on net income and financial disclosures.