Which of the Following Is Not Found on a Multi-Step

question 31

Multiple Choice

Which of the following is not found on a multi-step income statement?

• A)Income taxes payable
• B)Gross margin
• C)Extraordinary items
• D)Discontinued operations

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Definitions:

Operating Activity

Activities that constitute the core business functions, generating revenue and incurring expenses through day-to-day operations.

Accounts Receivable

The total finances that are due to a company from its customers for goods or services that have already been delivered or utilized, but payment has not been received.

Accounts Receivable Turnover

A financial ratio indicating how efficiently a company collects cash from credit sales by measuring the number of times receivables are collected over a period.

Inventory Turnover

An index that reveals the number of times a business's stock is sold and restocked during a specific period, showcasing how efficiently inventory is managed.