A classified income statement consists of all of the following major sections except for: a. cost...
Question:
A classified income statement consists of all of the following major sections except for:
a. cost of goods sold
b. operating revenues
c. operating expenses
d. non-operating revenues and expenses
e. current assets
Income Statement:
Income statement, as one of the financial statements, shows the company's profit or loss during the period with the revenues generated and expenses incurred. This is also known as a profit and loss statement.
Answer and Explanation: 1
The correct answer is e. current assets.
The following are included in the preparation of the classified income statement:
- cost of goods sold
- operating revenues
- operating expenses
- non-operating revenues and expenses
Current assets are excluded because these are reported in the classified balance sheet, not in the classified income statement, because these are assets.
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What Is an Income Statement? - Purpose, Components & Format
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