Net Income from Operations Is Gross Profit Less

question 12

Multiple Choice

Net income from operations is gross profit less

• A) financing expenses.
• B) operating expenses.
• C) other income and expense.
• D) other expenses.

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Definitions:

Par Value

The nominal or face value of a bond, stock, or coupon as indicated on a certificate or instrument.

Common Stock Dividends Distributable

A liability recognized on a company's balance sheet for dividends declared on common stock that have not yet been paid to shareholders.

Income Statements

Financial statements that show a company's revenue, expenses, and profit over a specific period.

Proprietorships

A type of business entity that is owned and run by one individual and where there is no legal distinction between the owner and the business.