Which of the Following Would Appear After the Heading of Operating

question 37

Multiple Choice

Which of the following would appear after the heading of operating income?

• A) cost of goods sold
• B) other operating income items gains or losses)
• C) operating expenses
• D) unusual gains or losses

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Definitions:

Financial Strength

A measure of the stability and health of an organization's finances, often assessed by factors like liquidity, solvency, and profitability.

Days' Sales Outstanding

An indicator of how quickly a company collects cash from accounts receivable after a sale over a given period.

Accounts Payables

Short-term liabilities of a company, representing amounts owed to suppliers or creditors for goods and services received but not yet paid for.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.