The List Below Contains Several Items That Appear on a Multiple-Step

question 9

Multiple Choice

The list below contains several items that appear on a multiple-step income statement.
1.other income and expense
2.income before income taxes
3.net income
4.operating expenses
5.gross margin
6.net sales
7.income from operations
Select the choice that lists the items in the order they would appear on a multiple-step income statement.

• A)6, 5, 4, 7, 1, 2, 3
• B)7, 6, 1, 4, 2, 3, 5
• C)6, 5, 4, 1, 7, 2, 3
• D)6, 7, 4, 1, 2, 3, 5

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Definitions:

Technological Advance

Progress in technology and innovation that leads to new methods, products, or improvements in production, efficiency, and development.

Preferred Mix

The optimal combination of goods and services chosen by an individual or firm based on preferences, income, and prices.

Productive Efficiency

Achieved when goods or services are produced at the lowest possible cost and utilizing resources in the best way possible.

Average Total Cost

The total cost of production divided by the quantity of output produced, showing the average cost per unit.