The Formula for a Typical Income Statement Is

question 50

Multiple Choice

The formula for a typical income statement is:

• A) Sales - Cost of goods sold - Selling & administrative expenses = Operating income
• B) Operating income = Gross margin - (Selling & administrative expenses + Cost of goods sold)
• C) Sales - Selling & administrative expenses - Cost of goods sold = Gross margin
• D) Gross margin - Cost of goods sold = Operating income

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