The Income Statement Shows Net Sales, Which Is Equal to

question 7

Multiple Choice

The income statement shows net sales, which is equal to

• A) earnings before taxes minus taxes.
• B) gross revenues minus returns and allowances.
• C) operating income minus operating expenses.
• D) operating income minus interest.
• E) net sales minus cost of goods sold.

---

Definitions:

Relay Piston

A relay piston is part of an automatic transmission's hydraulic system, used to amplify fluid pressure for shifting gears.

Secondary Circuit

An electrical circuit that receives power from a transformer or another circuit rather than directly from a power source, used in various electronic devices.

Low Pressure Warning

An alert system in vehicles, especially those with air brakes, that activates to indicate insufficient air pressure in the system, signaling potential brake failure.

Actuation Pressure

The minimum pressure required to operate or move a hydraulic or pneumatic component.