Operating Income Is Equal to Total Revenue Minus

question 119

Multiple Choice

Operating income is equal to total revenue minus

• A) Goodwill.
• B) Cost of goods sold.
• C) Cost of goods sold, depreciation, operating and general expenses.
• D) Cost of goods sold and operating expenses plus depreciation.
• E) Cost of goods sold and depreciation.

---

Definitions:

Trustee in Bankruptcy

An appointed individual responsible for managing the estate of a bankrupt person, to distribute the assets among creditors.

Subsequent Lien Creditor

A creditor who obtains a lien on a debtor's property after other liens have already been placed on the property, typically having lower priority in case of asset distribution.

Cumulative Rights

Voting rights allowing shareholders to accumulate their votes for a single candidate in a corporate election.

Secured Parties

Creditors or lenders who have a secured interest in a borrower's collateral to secure repayment of the loan.