Use This Information to Answer the Following Question If the Income Statement Were Prepared in a Multistep Form,operating

question 95

Multiple Choice

Use this information to answer the following question. $\begin{array}{c} \text {Alcorn \& Zeto Company}\\ \text { Income Statement}\\\text {For the Year Ended December 31, 2010}\\\begin{array}{llr} \text { Revenues} &\\ \text {Net sales } &\$100,000\\ \text {Dividend income }& 8,750\\ \text { Total revenues } &&\$108,750\\\text { Costs and expenses } & \\\text { Costs of goods sold } & \$ 37,750\\\text { Selling expenses } & 10,000 \\\text { General and administrative expenses } & 6,000 \\\text { Interest expense } & 6,250 \\ \text { Total costs and expenses } && 60,0000 \\\text { Income before income taxes } && \$48,750 \\\text { Income taxes } && 19,500 \\\text { Net income } && \$ 29,250 \\\end{array}\end{array}$
If the income statement were prepared in a multistep form,operating expenses would be

• A) $46,000.
• B) $16,000.
• C) $22,250.
• D) $40,000.

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Definitions:

Economic Thinking

The application of economic principles and concepts in analyzing and understanding decision-making, policy implications, and the allocation of resources.

Aviation Multiengine Airplanes

Aircraft equipped with more than one engine, enhancing safety, power, and performance capabilities, especially in aviation.

Excess Burden

The cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium, often due to taxation or other government intervention.

Revenue Derived

Income generated from normal business operations or other specific sources.