Which of the Following Line Items Below Is Present in Both

question 75

Multiple Choice

Which of the following line items below is present in both the multistep and an income statement in which expenses are simply subtracted from revenues to arrive at net income?

• A) Income before income tax expense
• B) Income from operations
• C) Net income
• D) Gross profit

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Definitions:

Present Value

Present value is a financial concept that describes the value of an expected income stream determined as of the date of valuation.

Lease Payments

Regular payments made by a lessee to a lessor in exchange for the right to use an asset, such as real estate or equipment.

Bonds Payable

Long-term liabilities representing money owed by an entity to bondholders, to be paid back at a specified future date with interest.

General Journal Entry

A record of financial transactions in the general journal that includes the date, accounts affected, amounts, and a brief description.