Choose one. A classified income statement consists of all of the following major sections except...
Question:
Choose one. A classified income statement consists of all of the following major sections except for:
a. Operating revenues
b. Cost of goods sold
c. Operating expenses
d. Non-operating revenues and expenses
e. Current assets
Income Statement:
Income statement reports the firm's financial performance, which evaluates if the company is profitable during the period. This could be prepared using either traditional income statement or classified income statement format.
Answer and Explanation: 1
The correct answer is e. Current assets.
Current assets are not major section of the classified income statement, but a section of classified balance sheet, since assets are not part of the company's financial performance during the period. The following are sections of the classified income statement:
- a. Operating revenues
- b. Cost of goods sold
- c. Operating expenses
- d. Non-operating revenues and expenses
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
What Is an Income Statement? - Purpose, Components & Format
from
Chapter 2 / Lesson 2
35K
Learn about what goes on an income statement and its format, including how to prepare, what is shown, and examples. Discover the importance of income statements.
Related to this Question
- A classified income statement consists of all of the following major sections except for: a. Operating revenues b. Cost of goods sold c. Operating expenses d. Non-operating revenues and expenses e. Current assets
- A classified income statement consists of all of the following major sections except for the: a. Operating revenues b. Cost of goods sold c. Operating expenses d. Non-operating revenues and expenses e. Current assets
- A classified income statement consists of all the following major section except for: a. Operating revenues b. Cost of goods sold c. Operating expenses d. Non-operating revenues and expenses e. Current assets
- 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
- A classified income statement consists of all of the following major sections except: a. Operating revenues b. Cost of goods sold c. Operating expenses d. Non-operating revenues and expenses e. Current assets
- An income statement consists of all of the following sections except: a. operating expenses b. operating revenues c. cost of goods sold d. non-operating revenues and expenses e. current assets
- The major elements of the income statement are: a. revenue, cost of goods sold, selling expenses, and general expenses. b. operating sections, non-operating section, results of discontinued operations, extraordinary items of gain or loss, and the cumula
- Gross profit will result if: a. If operating expenses are less than net income. b. sales revenue is less than operating expenses. c. If operating expenses are less than the cost of goods sold. d. If revenue is greater than the cost of goods sold.
- Gross profit will result if: (a) operating expenses are less than net income. (b) sales revenues are greater than operating expenses. (c) sales revenues are greater than cost of goods sold. (d) operating expenses are greater than cost of goods sold.
- Sales are the primary source of revenue and expenses are divided into two main categories: cost of goods sold and operating expenses. How do the components of revenues and expenses differ?
- The following amounts appeared in a classified income statement: Net sales $85,000 Net cost of purchases $22,000 Cost of goods sold $30,000 Operating expenses $15,000 How much was income from operations? a. $40,000 b. $52,000 c. $37,000 d. $22,000
- If a cost is properly includable in merchandise inventory: a. It remains on the Balance Sheet until the goods are sold. b. It is reflected as an Operating Expense on the Income Statement when the goods are sold. c. It will have no effect on Gross Profit w
- Presented here are the components in Sandhill Co.'s income statement. Determine the missing amounts. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income Year 1 $76,050 $(b) $32,700 $(d) $14,130 Year 2 $111,100 $74,400 $(c) $(e) $30
- Fill in the blanks to complete Basic Goods' Income Statement. Basic Goods Income Statement For Year Ended Dec. 31, 2011 Sales 6,492,817 Cost of goods sold and occupancy costs ? Gross profit 3,800,721 Operating expenses ? Operating income 491,878
- A classified income statement showed net sales of $630,000, cost of goods sold of $342,000, and total operating expenses of $192,000 for the fiscal year ended June 30, 2019. 1. What was the gross profit on sales? 2. What was the net income from operations
- In which section of the classified income statement is the Interest Income account found? A. Operating Revenue B. Cost of Goods Sold C. Operating Expenses D. Other Income E. Other Expenses
- Which expenses are subtracted from gross profit to arrive at income from operations? a. All expenses b. Cost of merchandise sold c. Operating expenses d. Sales expenses
- In which section of the classified income statement is the Interest Expense account found? A. Operating Revenue B. Cost of Goods Sold C. Operating Expenses D. Other Income E. Other Expenses
- In which section of the classified income statement is the Merchandise Inventory account found? A. Operating Revenue B. Cost of Goods Sold C. Operating Expenses D. Other Income E. Other Expenses
- Gross profit equals the difference between a. net income and operating expenses. b. sales revenue and cost of goods sold. c. sales revenue and operating expenses. d. sales revenue and cost of goods sold plus operating expenses.
- Income Statement Data: This year Revenue $150,000 Cost of Goods Sold $90,000 Operating Income $10,000 Income Tax Expense $1,800 Last year Revenue $120,000 Cost of Goods Sold $60,000 Operating Income
- In which section of the classified income statement is the Purchases account found? A. Operating Revenue B. Cost of Goods Sold C. Operating Expenses D. Other Income E. Other Expenses
- In which section of the classified income statement is the Sales account found? A. Operating Revenue B. Cost of Goods Sold C. Operating Expenses D. Other Income E. Other Expenses
- If sales revenues are $400, cost of goods sold is $310, and operating expenses are $60, what is the gross profit?
- If sales revenues are $450,000, cost of goods sold is $340,000, and operating expenses are $80,000, what is the gross profit?
- If sales revenues are $200,000, the cost of goods sold is $155,000, and operating expenses are $30,000, what is the gross profit? a. $15,000 b. $45,000 c. $75,000 d. $185,000
- The following is Talley Company's 2010 income statement. Sales revenue $571,300 Cost of goods sold 342,780 Gross margin 228,520 Operating expenses 102,300 Operating income $126,220 (a). What is the m
- Operating expenses: $27,000 Sales revenue: $235,000 Cost of goods sold: $161,000 The profit margin ratio would be: a. 0.69. b. 0.31. c. 0.80. d. 0.20.
- What is the main difference between the Cost of Goods Sold (COGS) and Operating Expenses (OpEx) on a company's income statement? A) COGS corresponds to expenses that can be directly linked to individual products or services sold, whereas with OpEx there
- A classified income statement showed net sales of $1,160,000, cost of goods sold of $545,000, and total operating expenses of $416,000 for the fiscal year ended December 31, 2019. 1. What was the gross profit on sales? 2. What was the net income from oper
- A Manufacturing has prepared the following income statement: Sales 450,000 COGS 200,000 Gross Margin 250,000 Operating Expenses 196,000 Operating Income 54,000 According to company records, $50,000 of the Cost of Goods Sold and $166,000 of Operating Expe
- The income statement for Kipitz Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows: Sales $657,800 Cost of merchandise sold 227,500 Gross profit $430,300 Operating expenses:
- Interest expense and interest revenue should be shown under the: a) 'Operating Expenses' section. b) 'Cost of Goods Sold' section. c) 'Non Operating Revenues and Expenses' section. d) 'Operating Revenues' section.
- If the sales revenue is RM400,000, the Cost of goods sold is RM310,000, and the Operating expenses are RM60,000 what is the gross profit? a. 30,000 b. 90,000 c. 80,000 d. 70,000
- In which section of the classified income statement is the Utilities Expense account found? A. Operating Revenue B. Cost of Goods Sold C. Operating Expenses D. Other Income E. Other Expenses
- Assume that sales are $450,000, sales discounts are $10,000, net income is $35,000, and cost of goods sold is $320,000. Gross profit and operating expenses are, respectively: a. $120,000 and $95,000. b. $120,000 and $85,000. c. $130,000 and $95,000. d
- Assume that sales are $450,000, sales discounts are $10,000, net income is $35,000, and cost of goods sold is $320,000. Gross profit and operating expenses are, respectively: a. $120,000 and $95,000. b. $120,000 and $85,000. c. $130,000 and $95,000. d. $1
- On a multiple-step income statement, Income from Operations is computed as follows: a. net sales less cost of goods sold. b. cost of goods sold less total assets. c. operating expenses plus total assets. d. gross profit less total operating expenses.
- Which subtotals appear on a multi-step income statement but do not appear on a single-step income statement? a. Gross profit and Income from operations b. Operating expenses and Net income c. Cost of goods sold and Net income d. Net sales and Cost of
- Presented here are the components in Cullumber Company's income statement. Determine the missing amounts. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income Year 1 $71,000 $(b) $30,000 $(d) $10,810 Year 2 $108,100 $70,100 $(c) $(
- A single-step income statement can be identified by which of the following formats? a. It shows subheadings tor operating and non-operating items. b. It lists a figure for gross profit. c. It shows cost of goods sold as a subtraction from net sales to det
- State the missing items. 1. Gross profit - Operating expenses = 2. Cost of goods sold + Gross profit = 3. Sales revenue - - = Net sales 4. Income from operations + - = Net income 5. Net sales - Cost o
- Presented below are the components in Veasy Company's income statement. Determine the missing amounts. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income (a) $75,000 _ _
- Which of the following is not a principal category of "Other operating expenses" frequently reported on the income statement? A. Cost of goods sold B. Selling expenses C. General and administrative expenses D. Research and development expenses
- Use the income statement and information about changes in noncash current assets and current liabilities: Income statement Particulars Amount ($) Amount ($) Sales 2,416,000 Cost of goods sold 1,183,840 Gross profit 1,232,160 Operating expenses: Salaries e
- Gross profit is calculated as the difference between net sales revenue and: a) purchase expense b) cost of goods sold c) cost of merchandise inventory d) operating expenses
- In which section of the classified income statement is the Rent Expense account found? A. Operating Revenue B. Cost of Goods Sold C. Operating Expenses D. Other Income E. Other Expenses
- Gross profit equals the difference between net sales and a. operating expenses. b. cost of goods sold. c. net income. d. cost of goods sold plus operating expenses.
- Cost of goods sold is shown on the: A. Statement of retained earnings. B. Balance sheet as an asset. C. Income statement before gross profit. D. Income Statement after gross profit.
- Operating expenses: $54,000 Sales returns and allowances: $2,000 Sales discounts: $9,000 Sales revenue: $158,000 Cost of goods sold: $92,000 Gross Profit would be: a. $55,000. b. $68,000. c. $66,000. d. $64,000.
- Indicate which one of the following would likely appear on both a multi-step income statement and a single-step income statement. a. Cost of goods sold b. Income from operations c. Gross profit d. All of these would appear on both types of income statemen
- Operating expenses $ 22000 Sales returns and allowances 5000 Sales discounts 5000 Sales revenue 150000 Cost of goods sold 108000 The gross profit rate would be A) 0.21. B) 0.26. C) 0.23. D) 0.75.
- On a traditional income statement, sales revenue less cost of goods sold equals: A. gross profit. B. contribution margin. C. operating income. D. operating expenses.
- A single-step income statement: a. reports gross profit. b. does not report cost of goods sold. c. reports sales revenues and "other revenues and gains" in the revenues section of the income statement. d. reports operating income separately.
- The following selected data are taken from the financial statements of Cedar Industries: Sales revenue $642,000 Cost of goods sold 365,000 Gross profit $277,000 Selling and administrative expense 100,000 Operating income $177,000 Interest expense 50,000 I
- Operating expenses $28,000 Sales revenue 184,000 Cost of goods sold 127,000 Calculate the profit margin ratio.
- The Hot Aire Company reported the following items on its income statement for 2007. a. Net operating revenues, $956,000. b. Cost of goods sold, $312,000. c. Selling and administrative expenses, $245,000. d. Research and development expenses, $122,000.
- Net income plus operating expenses is equal to: A. cost of the merchandise. B. sales. C. gross profit. D. cost of goods sold.
- In May the following selected transactions were completed. All purchases and sales were on account except as indicated. The cost of all merchandise sold was 65% of the sales price. May 2 Purchased merchandise from Younger Company $7,500. 3 Received freigh
- Gross profit is calculated as: (a) Sales less cost of goods sold. (b) Sales less operating expenses. (c) Net sales less cost of goods sold. (d) Net sales less operating expenses. (e) Net sales less cost of goods sold and operating expenses.
- The Frame It Company reporting the following items on its income statement in 2009: a. Net operating revenues: $814,250 b. Cost of goods sold: $305,908
- Presented below are the components in Gates Company's income statement. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income a. $75,000 ? $30,000 ? $10,800 b. $108,000 $70,000 ? ? $29,500 c. ? $83,900 $79,600 $39,500 ? Determine the
- What are the major elements of an Income Statement? A. Revenue, Cost of Goods Sold, Selling Expenses, General Expenses B. Revenues, Expenses, Gains, Losses
- In which section of the classified income statement is the Sales Returns and Allowances account found? A. Operating Revenue B. Cost of Goods Sold C. Operating Expenses D. Other Income E. Other Expenses
- On a multi-step income statement, the operating expenses are subtracted from [{Blank}] to arrive at operating income. A) net sales B) cost of goods sold C) net profit D) gross profit
- Bad debts expense is reported on the income statement as: a. part of cost of goods sold. b. an expense subtracted from net sales to determine gross profit. c. a contra revenue account. d. an operating expense
- Operating profit margin equals: a. Income from operations / sales b. Net income / sales c. Gross profit / sales d. Profit from operations / cost of sales
- Indicate which one of the following would not appear on both a single-step income statement and a multiple-step income statement. a. Gross profit b. Operating expenses c. Sales revenue d. Cost of goods sold
- Presented below are the components in Veasy Company's income statement. Determine the missing amounts. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income (a) $75,000 ? $28,000 ? $9,800 (b) $108,000 $70,000 ? ? $29,500 (c) ? $83,90
- Given that sales Revenue: 460,000. Cost of goods sold 300,000. operating expenses 85,000. sales discounts 20,000. Sales returns and allowances: 15,000. Interest revenue: 5,000. 1) What is net sales revenue? 2) Assume net sales revenue is 450,000. What i
- Product costs pertaining to the units that are not sold yet are reported as ____. a. inventory on the balance sheet b. selling expenses on the income statement c. costs of goods sold on the balance sheet d. administrative costs on the income statement
- If a company reported the following items on its income statement (cost of goods sold $5,000, income tax expense $2,000, interest expense $500, operating expenses $3,500, sales revenue $14,000), what amount would be reported for the subtotal income from o
- Cost of Goods Sold is: a) an expense recorded when inventory is sold. b) an expense associated with both buying and selling inventory. c) a contra-revenue account that reduces net sales on the income statement. d) an operating expense on the income statem
- If sales revenues totals $450,000, cost of goods sold is $320,000, operating expenses are $90,000, and nonoperating expenses are $20,000, how much is the gross profit? a. $130,000 b. $360,000 c. $40,000 d. $270,000 e. $450,000
- Financial statements for Askew Industries for 2013 are shown below: 2013 Income Statement ($ in 000s) Sales $9,200 Cost of goods sold (6,350) Gross profit 2,850 Operating expenses (2,050) Interest exp
- Operating expenses $ 59000 Sales returns and allowances 2000 Sales discounts 9000 Sales revenue 194000 Cost of goods sold 102000 Gross Profit would be a. $92000. b. $90000. c. $81000. d. $94000.
- In which section of the classified income statement is the Purchase Returns and Allowances account found? A. Operating Revenue B. Cost of Goods Sold C. Operating Expenses D. Other Income E. Other Expenses
- On a multiple-step income statement, which of the following account balances would normally appear below the "operating income" subtotal line? (Select all that apply.) a. Interest revenue b. Cost of goods sold c. Salaries expense d. Sales revenue e. Gain
- Presented here are the components in Casilla Company's income statement. Determine the missing amounts. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income Year 1 $ 72,940 $ (
- Which of the following are needed to generate an income statement for a merchandising firm? a) Revenue, cost of goods sold, and expenses b) Cost of goods sold, inventory, and expenses c) Expenses, pre-paid payments, and inventory
- Operating expenses $38,000 Sales returns and allowances $2,000 Sales discounts $5,000 Sales revenue $140,000 Cost of goods sold $86,000 Calculate the gross profit.
- Shown below are selected data from the financial statements of Supreme Co. Income statement: Net sales $1,230 Cost of goods sold $520 Operating expenses $440 Net income $390 Balance sheet data: Average total equity $2,400 Average total assets $4,000 Supre
- The basic differences between the financial statements of a merchandising business and a service business include reporting cost of merchandise sold on the income statement and the: a. inclusion of merchandise inventory on the balance sheet as a current a
- In which category does the Cost of Goods Sold account belong on an income statement? a. Net sales b. Cost of sales c. Selling expenses d. General and administrative expenses e. Other revenues and expenses f. Not on the income statement
- A product cost is: a. shown with operating expenses on the income statement. b. expensed in the period the product is sold. c. shown with current liabilities on the balance sheet. d. expensed in the period in which it is manufactured.
- Positive operating income will result if gross profit exceeds a. costs of goods sold. b. salaries and wages expense. c. cost of goods sold plus operating expenses. d. operating expenses.
- Which of the following items would be included in the operating expense budget? a. Sales commissions. b. Raw material purchases. c. Cash receipts. d. Cost of goods sold.
- What is the cost of goods available allocated to? a) Beginning inventory and purchases b) Cost of goods sold reported on the income statement and ending inventory reported on the balance sheet c) Gross profit sold profited on the income statement and e
- Which of the following is classified in an income statement as an operating expense? a. Cost of goods sold b. Income tax expense c. Dividend revenue from investments d. Advertising expense e. Interest expense
- Which of the following expressions is incorrect? a. Gross profit - Operating expenses = Net income b. Sales revenue - cost of goods sold - Operating expenses = Net income c. Net income + Operating expenses = Gross profit d. Operating expenses - Cost of go
- Which of the following expressions is incorrect? A. Gross profit - operating expenses = net income B. Sales revenue - cost of goods sold - operating expenses = net income C. Net income + operating expenses = gross profit D. Operating expenses - cost of
- How is Income from Operations determined? a. Gross Profit + Cost of Goods Sold b. Net Sales - Selling Expenses - Administrative Expenses c. Net Sales - Cost of Goods Sold - Selling Expenses - Administrative Expenses d. Gross Profit - Cost of Goods Sold +
- Sales revenue is 75,000, gross profit is 30,000, and net income is 10,800. What is the cost of goods and operating expenses?
- If the contribution margin ratio is 45%, target operating income is $50,000, and the sales revenue needed to achieve the target operating income is $300,000, what are total fixed expenses? Select one:
- Which of the following is not a component of the operating budget? A) Capital budget B) Purchases and cost of goods sold budget C) Budgeted income statement D) Operating expense budget
- In which section of the classified income statement is the Depreciation Expense-Store Equipment account found? A. Operating Revenue B. Cost of Goods Sold C. Operating Expenses D. Other Income E. Other Expenses
- Shown here is an income statement in the traditional format for a firm with a sales volume of 7,900 units. Cost formulas also are shown: Revenues $34,500 Cost of goods sold ($5,600 + $2.2/unit) 22,980 Gross profit $11,520 Operating expenses: Selling ($1,1
- A statement of comprehensive income that includes revenue, cost of sales, selling expenses, and financial expenses would have been prepared using the: a. nature of expense method b. narrative method c. revenues and gains approach d. function of expense ap
- A company reports the following comparative income statements: 2009 2008 Net sales $736,000 $840,000 Costs of goods sold $518,880 $571,200 Gross profit $217,120 $268,800 Operating expenses $104,800 $130,000 Net income $112,320 $138,800 What are the costs
- Shown here is an income statement in the traditional format for a firm with a sales volume of 20,000 units. Cost formulas also are shown: Revenues $200,000 Cost of goods sold ($36,000 + $5.20/unit) 140,000 Gross profit $60,000 Operating expenses: Selling
Explore our homework questions and answers library
Browse
by subject