Which of the Following Is the Correct Order of Subtotals

question 260

Multiple Choice

Which of the following is the correct order of subtotals that appear on a multi-step income statement?

• A) Operating income, Gross profit, Net income
• B) Gross profit, Net sales revenue, Net income
• C) Net income, Operating income, Net income
• D) Gross profit, Operating income, Net income

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Definitions:

Method of Loci

A mnemonic device that involves visualizing a familiar route or place to remember information sequentially by associating it with specific locations.

Recall Information

Recall information refers to the cognitive process of retrieving stored information from memory without the aid of cues.

Distributed Practice

A learning strategy that involves spreading out study sessions over time rather than cramming them into one single session.

SPAR Method

The SPAR Method is a structured approach to problem-solving that involves Scanning, Planning, Acting, and Reflecting.