Which of the Following Statements Regarding a Multistep Income Statement

question 2

Multiple Choice

Which of the following statements regarding a multistep income statement is true?

• A)When a company sells inventory for more than its cost,the difference between the sales revenue and the cost of goods sold is called the operating income.
• B)A single-step income statement shows sales,gross margin,and net income.
• C)Gross margin is calculated as sales revenue minus cost of goods sold.
• D)Gross margin equals net income.

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Definitions:

12th Graders

Students typically in the final year of secondary education in the United States, usually aged 17 or 18.

Meritocracy

A system in which advancement within the system is based on individual ability or achievement.

Stratification System

The hierarchical arrangement of individuals or groups in society, based on wealth, power, race, education, etc., that affects their access to resources and opportunities.

Equality Of Opportunities

The principle that all individuals should have the same chances to succeed in life, regardless of their background, race, gender, or other personal characteristics.