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:

Deferred Tax Expense

A financial reporting concept referring to the difference in taxes payable in the future due to temporary differences between the tax and book accounting.

Deferred Tax Liability

A tax obligation that a company owes but can delay paying to a future period, often arising from differences in accounting methods for book and tax purposes.

Internal Revenue Code

The comprehensive set of tax laws and regulations established by the United States federal government.

Financial Accounting

The field of accounting focused on the summarization, analysis, and reporting of financial transactions pertaining to a business.