Which of the Following Best Describes Income from Operations

question 31

Multiple Choice

Which of the following best describes income from operations?

• A) It includes the results of discontinued operations.
• B) It includes extraordinary items.
• C)It is sales minus cost of goods sold and income tax expense.
• D)It is net sales minus cost of goods sold and operating expenses.

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Definitions:

Competitive Industry

A sector of the marketplace characterized by numerous firms vying for market share, leading to benefits for consumers through innovation and lower prices.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices over a specific time period.

Indifference Principle

If an asset is mobile, then in long-run equilibrium, the asset will be indifferent about where it is used; that is, it will make the same profit no matter where it goes.

Garbage Collector

An individual or entity responsible for collecting and disposing of waste material from public or designated areas.