Which of the Following Types of Items Would You Be

question 88

Multiple Choice

Which of the following types of items would you be most likely to see below the income tax expense line on an income statement?

• A)Gain on Sale of Discontinued Operations,Net of Tax
• B)Gross Profit
• C)Selling,General,and Administrative Expense
• D)Salaries Expense

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Definitions:

Share Profits

The distribution of a portion of a company's earnings to its shareholders as determined by the board of directors.

Share Losses

In investing, refers to the apportioning of financial losses among shareholders or partners in proportion to their ownership or interest in the enterprise.

Manufacturing Arrangement

A type of franchise in which the franchisor provides the franchisee with a formula or ingredient that is necessary to manufacture a product.

Distributorship

A business arrangement in which a manufacturer or supplier authorizes an entity to distribute its products.