The Form of Income Statement That Derives Its Name from the Fact

question 118

Multiple Choice

The form of income statement that derives its name from the fact that the total of all expenses is deducted from the total of all revenues is called a

• A) multiple-step statement
• B) revenue statement
• C) report-form statement
• D) single-step statement

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Definitions:

Operating Expenses

These are costs associated with the day-to-day operations of a business, excluding cost of goods sold, and may include rent, utilities, and salaries.

Departmental Expenses

Costs that are directly incurred by a specific department within an organization.

Indirect Expenses

Expenses incurred that are not directly tied to a specific product or service but are necessary for running the business, such as utilities or rent.

Budget Performance Report

A financial report comparing budgeted amounts to actual amounts for revenues, expenditures, and other financial elements over a period.