Asked by Ashlee Tennell on Jul 14, 2024
Verified
Which of the following would not be included on an income statement?
A) Accumulated depreciation.
B) Insurance expense.
C) Cost of goods sold.
D) Discontinued operations.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded against a fixed asset over its useful life to reflect wear and tear or obsolescence.
Income Statement
A report detailing a business's income, expenditures, and profit for a certain timeframe.
- Understand the components and structure of financial statements.
- Clarify the differences between income elements associated with operating activities and those not related to operating activities.
Verified Answer
TA
Tammi AdamsJul 18, 2024
Final Answer :
A
Explanation :
Accumulated depreciation is not included on an income statement as it is a contra asset account that appears on the balance sheet. The other options (B, C, and D) are commonly found on an income statement.
Learning Objectives
- Understand the components and structure of financial statements.
- Clarify the differences between income elements associated with operating activities and those not related to operating activities.
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