Which of the Following Statements Regarding a Multistep Income Statement

question 2

Multiple Choice

Which of the following statements regarding a multistep income statement is true?

• A)When a company sells inventory for more than its cost,the difference between the sales revenue and the cost of goods sold is called the operating income.
• B)A single-step income statement shows sales,gross margin,and net income.
• C)Gross margin is calculated as sales revenue minus cost of goods sold.
• D)Gross margin equals net income.

Understand the process and purpose of bank reconciliations in managing cash balances.

Identify the risks and limitations associated with internal control systems, including human errors and collusion.

Understand the classification and management of cash equivalents and their impact on a company's liquidity.

Understand the primary components of an internal control system and differentiate between control activities.

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Definitions:

Tourette Syndrome

A neurological disorder characterized by repetitive, involuntary movements and vocalizations called tics.

Motor Tics

Motor Tics are sudden, brief, repetitive movements typically involving specific muscle groups, often seen in conditions like Tourette syndrome.

Neuromuscular Junction

The synapse or junction where a motor neuron communicates with a skeletal muscle fiber, causing it to contract.