Referring to the Following Table,what Is Operating Income A) $40,000
B) $55,000
C) $160,000
D) $190,000

question 109

Multiple Choice

Referring to the following table,what is Operating income? $\begin{array}{|l|r|}\hline\text { Sales revenue } & \$ 460,000 \\\hline \text { Cost of goods sold } & 300,000 \\\hline \text { Operating expenses } & 85,000 \\\hline \text { Sales discounts } & 20,000 \\\hline \text { Sales returns and allowances } & 15,000 \\\hline \text { Interest revenue } & 5,000\\\hline\end{array}$

• A) $40,000
• B) $55,000
• C) $160,000
• D) $190,000

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Definitions:

Revenue Account

An account that records the income generated by a business from its normal operational activities.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the appropriate period.

Taxes Payable

The amount of tax a company or individual owes to the tax authorities but has not yet paid by the end of the accounting period.

Taxes Expense

The total amount of taxes owed by an individual or corporation to the government within a fiscal period.