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:

Cash Receipts

The inflow of cash into a business, often tracked and recorded as part of the financial accounting process.

Adjusting Entries

Accounting records created at the close of an accounting period to assign revenues and expenses to the period they truly belong to.

Deposits In Transit

Funds that have been recorded in a company's books but not yet reflected in its bank balance due to processing time.

Cash Disbursements

The act of paying out cash for various purposes, including expenses, investments, and dividends.