Which of the Following Is NOT Included as Operating Income

question 82

Multiple Choice

Which of the following is NOT included as operating income?

• A)Cost of goods sold
• B)Sales
• C)Operating expenses
• D)Taxes

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Definitions:

Unrealized Increase

The potential gain in the value of an investment that has not yet been sold and thus not yet converted into actual profit.

Donated Capital

Assets and resources given to a company without the expectation of return or compensation, often used to fund operations or expand business activities.

Contra Account

An account used in a general ledger to reduce the value of a related account when the two are netted together.

Compensatory Stock Options

Stock options given to employees as part of their compensation package, allowing them to purchase company stock at a discount in the future.