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

---

Definitions:

Equity Multiplier

A financial ratio indicating how much of a company's assets are financed by its shareholders' equity.

Debt-to-equity Ratio

This metric measures the relative contribution of shareholder equity and debt in the funding of a company's assets.

Dividend Yield Ratio

This ratio indicates the annual dividend payments of a company as a percentage of its current share price.

Earnings per Share

A financial ratio indicating the portion of a company's profit allocated to each outstanding share of common stock, showing the company's profitability per share.