On a Multi-Step Income Statement,which of the Following Is Added

question 159

Multiple Choice

On a multi-step income statement,which of the following is added to operating income to arrive at net income?

• A) sales revenue
• B) interest expense
• C) sales discounts forfeited
• D) operating expenses

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Definitions:

Residual Value

It is the estimated amount that an asset is expected to realize at the end of its useful life after deducting all costs associated with its disposal.

Depreciation

The methodical distribution of a physical asset's cost over its lifetime, indicating its usage, deterioration, or becoming outdated.

Fixed Asset Turnover

A financial ratio that measures a company's ability to generate net sales from its fixed-asset investments, such as property, plant, and equipment.

Favorable Trend

A pattern or movement in financial metrics indicating positive progress or improvement.