Which of the Following Is Added to Operating Income to Arrive

question 17

Multiple Choice

Which of the following is added to operating income to arrive at net income?

• A)sales revenue
• B)cost of goods sold
• C)interest revenue
• D)operating expenses

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Definitions:

Cost of Goods Manufactured

The total cost incurred to produce products during a specific period, including materials, labor, and overhead.

T-Account

A graphical representation of a general ledger account, used in accounting to depict the effects of transactions on each account.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including labor, materials, and overhead.

Inventories

Assets held for sale in the normal course of business, in the process of production, or in the form of materials to be consumed in the production process or in the rendering of services.