Corporations Report Which of the Following in a Separate Section

question 160

Multiple Choice

Corporations report which of the following in a separate section of the income statement?

• A) Cost of goods sold.
• B) Income tax expense.
• C) Gross profit.
• D) Other revenues and gains.

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Definitions:

Financial Leverage

The use of borrowed funds to increase the potential return on investment.

General Journal

A comprehensive journal that records the initial data for all different types of financial transactions.

Ledger

An accounting book or computer file used for recording and totaling economic transactions measured in terms of a monetary unit, by account.

Posting

The process of recording amounts as debits or credits in the accounts of a company's general ledger.