Which of the Following Is not a True Statement About

question 39

Multiple Choice

Which of the following is not a true statement about a multiple-step income statement?

• A)Operating expenses do not include income tax expense.
• B)There may be a section for non-operating activities.
• C)There may be a section for operating assets.
• D)There is a section for cost of goods sold.

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Definitions:

Fixed Asset Accounts

Accounts that track the purchase, depreciation, and disposal of long-term assets owned by a company.

Office Equipment

Assets like desks, chairs, computers, and printers that are necessary for the operation of an office but are not directly involved in the production process.

Delivery Equipment

Vehicles and other assets used by a business specifically for the purpose of transporting goods to customers.

Statement of Owner's Equity

A financial document that shows changes in the equity of a business over a period of time, including contributions, withdrawals, and net income.