A Multiple-Step Income Statement Reports Different Types of Income That

question 158

Multiple Choice

A multiple-step income statement reports different types of income that include:

• A)sales revenue and service revenue.
• B)income tax expense,utilities expense,rent expense.
• C)gross profit,operating income and net income.
• D)cost of goods sold and operating expenses.

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Definitions:

Materiality

The significance of information or an event in influencing decisions or actions based on its potential impact.

Innocent Misrepresentation

A false statement made by one party to another without knowing it was false, which may lead to the rescission of a contract.

Material

Important. In securities law, a fact is material if a reasonable person would consider it important in his decision to purchase shares or to vote shares.

Rescind

To withdraw, negate, or overturn a law, order, or agreement.