In What Order Do the Following Items Appear in a Company's

question 4

Multiple Choice

In what order do the following items appear in a company's statement of financial performance?
1. Tax expense
2. Revenue
3. Gross profit
4. Operating profit
5. Cost of sales

• A)1, 2, 3, 5 & 4.
• B)2, 3, 5, 1 & 4.
• C)2, 5, 3, 1, & 4.
• D)2, 5, 3, 4 & 1.

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Definitions:

Duty of Care

A legal obligation requiring individuals and entities to exercise a reasonable standard of care to avoid causing harm to others.

Positive Net Worth

The financial status where total assets exceed total liabilities.

Obvious Theft

A situation where an act of stealing is clear and unmistakable to any observer.

Audit

A systematic examination and verification of a company's financial records, performance, or compliance with legal requirements.