In a Multi-Step Income Statement,which of the Following Items Is

question 225

Multiple Choice

In a multi-step income statement,which of the following items is excluded from the calculation of operating income?

• A) gross profit
• B) interest expense
• C) selling expense
• D) administrative expense

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Definitions:

NSF Check

A check that cannot be processed due to insufficient funds in the account it's drawn on.

Petty Cash Fund

A small amount of cash kept on hand for minor, incidental expenses of a business.

Journal Entries

Records of financial transactions in the accounting system, ensuring every movement of funds is documented.

Office Supplies

Items and materials used in offices for daily operations, including paper, pens, and other stationery.