Which of the Following Would Not Be Included in Net

question 24

Multiple Choice

Which of the following would not be included in net income?

• A) sales from products and services that occurred during the accounting period
• B) an unrealized gain on an available-for-sale debt investment as of the end of the accounting period
• C) wages and salaries expense incurred during the accounting period
• D) a gain from the disposal of equipment that occurred on the last day of the accounting period

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Definitions:

Manufacturing Overhead Budget

A financial plan detailing the projected or expected indirect costs involved in the manufacturing process, excluding direct labor and materials.

Variable Expenses

Costs that vary directly with the level of production or business activity, such as raw materials and commissions.

Selling and Administrative Expense Budget

A detailed plan that estimates the selling and administrative expenses of a business for a specific period.

Budgeted Sales

The projected amount of sales, in units or currency, expected to be achieved in a specific period, as determined by a company's budget.