I Should Not Record ____ on an Income/expense Statement Covering

question 91

Multiple Choice

I should not record ____ on an income/expense statement covering January 1 to June 30.

• A) an $800 refrigerator bought on credit May 30
• B) a paid March telephone bill
• C) health insurance premiums deducted from monthly pay checks
• D) checking account service charges
• E) groceries bought and paid for in June

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Definitions:

Operating Income

A company's profit after subtracting operating expenses, such as wages and cost of goods sold, from its gross revenue.

Return on Investments

A measure of the profitability of an investment, calculated by dividing the net profit from the investment by the total amount invested.

Budget Performance Report

A financial report comparing the actual financial activity to the forecasted or budgeted financial performance.

Variances

Differences between planned or expected financial performance and the actual performance.