On a Multiple-Step Income Statement,operating Expenses Are Deducted from Cost

question 52

True/False

On a multiple-step income statement,operating expenses are deducted from cost of goods sold to obtain operating income.

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Definitions:

Expenditure

Actual payment of cash or cash equivalent for goods or services, or a charge against available funds in settlement of an obligation as evidenced by an invoice, receipt, voucher, or other such document; acquired material, property, or labor in exchange for money.

Acquired Material

Items or substances that are obtained or collected for use, often referring to resources gathered for a specific project or purpose.

Liabilities

Anything to which a person is liable, responsible, legally bound; debts or accounts payable (A/P) owed by the business.

Accounts Payable

The amount of money owed by a company to its creditors or suppliers for goods and services received but not yet paid for.