In a Multi-Step Income Statement,which of the Following Items Are

question 86

Multiple Choice

In a multi-step income statement,which of the following items are NOT included in Operating income?

• A) Net sales
• B) Interest expense
• C) Selling expenses
• D) General expenses

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Definitions:

Income Before Taxes

The earnings of a business before income tax expense has been deducted.

Interest Expense

The financial charge an entity experiences for borrowing money over a specific period.

Quick (Acid Test) Ratio

A liquidity measure evaluating a company's ability to cover its short-term liabilities with its most liquid assets.

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid to creditors within one year.