As Compared to a Traditional Income Statement Format, Which of the Following

question 60

Multiple Choice

As compared to a traditional income statement format, which of the following terms do not appear on the contribution margin format income statement?

• A)Operating expenses.
• B)Contribution margin.
• C)Operating income.
• D)Variable expenses.

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Definitions:

Credit Period

The duration of time allowed by a seller to the buyer to pay for the goods or services received, without incurring any additional costs.

Probability of Default

The likelihood that a borrower will fail to meet their debt obligations.