When Analyzing a Company's Income Statement, a Fact to Remember

question 22

Multiple Choice

When analyzing a company's income statement, a fact to remember is that:

• A) cost of sales is another term for gross profit.
• B) cost of goods sold is the major expense of merchandising entities.
• C) companies are not allowed to offset items such as interest income and interest expense against each other.
• D) net sales is equal to sales revenue less cost of goods sold.

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Definitions:

Date

generally refers to a specific day of the calendar noted for particular events or meetings, but can also mean the act of going out with someone in whom one has a romantic interest.

Time of Call

Refers to the specific moment or duration when a call, often regarding an appointment or meeting, is made or received.

Initials

The first letters of each word in a person's name, often used as a signature or to identify personal items.

THINK Technique

A decision-making tool that encourages individuals to consider if what they are about to say is True, Helpful, Inspiring, Necessary, and Kind before speaking.