When Creating the Income Statement, Which of the Following Statements

question 282

Multiple Choice

When creating the income statement, which of the following statements is accurate?

• A) revenues, minus general operating expenses = gross profit.
• B) revenues, minus tax expense = gross profit.
• C) revenues, minus depreciation expense = gross profit.
• D) revenues, minus cost of goods sold = gross profit.

---

Definitions:

Stock Price

The cost of purchasing a share of a company, determined by supply and demand in the stock market.

Disseminated

Refers to the action of spreading information, knowledge, or data widely.

Privately Held Companies

Businesses whose ownership is private, meaning their shares are not traded on public stock exchanges and are typically owned by the company's founders, management, or a group of private investors.

Federal Regulation

The body of law created by the federal government of a country to govern activities, enforced by executive agencies and interpreted by courts.