The List Below Contains Several Items That Appear on a Multiple-Step

question 110

Multiple Choice

The list below contains several items that appear on a multiple-step income statement.
1. other income and expense
2. incame before income taxes
3. net Income
4. operating expenses
5. gross margin
6. net sales
7. income from operations
In which order would these items appear on a multiple-step income statement?

• A) 6, 5, 4, 7, 1, 2, 3
• B) 7, 6, 1, 4, 2, 3, 5
• C) 6, 5, 4, 1, 7, 2, 3
• D) 6, 7, 4, 1, 2, 3, 5

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Definitions:

Potential Lenders

Entities or individuals who may provide loans or credit but have not yet agreed to do so.

Equal Credit Opportunity Act

A U.S. law that aims to make it illegal for creditors to discriminate against applicants based on race, color, religion, national origin, sex, marital status, age, or because they receive public assistance.

Extend Credit

Involves offering a loan or allowing goods or services to be purchased now with the agreement to pay later.

Incomes Below

Refers to earnings that fall beneath a specified benchmark, often used in discussions about poverty levels or eligibility for financial assistance.