Indicate Which One of the Following Would not Appear on Both

question 154

Multiple Choice

Indicate which one of the following would not appear on both a single-step income statement and a multiple-step income statement.

• A)Gross profit
• B)Operating expenses
• C)Sales revenue
• D)Cost of goods sold

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Definitions:

Business Cycle

The fluctuations in economic activity that an economy experiences over a period of time, marked by periods of expansion and contraction in GDP.

Fiscal Drag

The negative effect on disposable income and aggregate demand when taxes do not fall in line with inflation, effectively increasing the tax burden.

Classical Economists

Economists who believe in self-regulating markets where competition leads to efficient outcomes without government intervention.

Investment

The act of allocating resources, often financial, into something expecting it to generate income or profit.