Which of the Following Statements Is False

question 105

Multiple Choice

Which of the following statements is false?

• A)The income statement covers a period of time.
• B)A loss on the sale of plant and equipment is considered a peripheral activity and is not reported on the income statement.
• C)Rent expense is a component of operating income.
• D)Interest expense isn't a component of operating income.

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Definitions:

Break-even Chart

A graphical representation that displays the point at which total costs and total revenues are equal, indicating no net loss or gain.

Total Revenue

The total amount of money generated by a company from its sales of goods or services before any costs or expenses are deducted.

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Break-even Point

The level of production or sales at which total revenues equal total costs, resulting in neither profit nor loss.