On the Income Statement

question 106

Multiple Choice

On the income statement:

• A) selling, general and administrative expenses are the costs of operations that are not directly related to merchandise purchases and occupancy.
• B) income tax expense will not be found on the income statement since corporations do not pay taxes.
• C) net income is another term for income from continuing operations.
• D) selling, general and administrative expenses are shown before gross profit.

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Definitions:

Government Regulations

Rules and laws established by government agencies to control and guide the operation of businesses and individuals.

Small Businesses

Entities that are privately owned, operate with a small number of employees, and typically have a low volume of sales.

Securing Adequate Financing

The process of obtaining the necessary funds to start or expand operations, typically through loans, equity investments, or other financial instruments.

Small Businesses

Enterprises characterized by a small number of employees and/or low volume of sales, often defined by local or national standards.