Which of the Following Items Is Not Shown on a Single-Step

question 114

Multiple Choice

Which of the following items is not shown on a single-step income statement?

• A)Cost of goods sold.
• B)Interest expense.
• C)Selling expenses.
• D)Gross margin.

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Definitions:

Gross Profit

The financial metric calculated by subtracting cost of goods sold from total net sales, reflecting the efficiency of a company in managing its manufacturing costs.

LIFO

LIFO (Last In, First Out) is an inventory costing method where the most recently produced or purchased items are the first to be expensed.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insight into financial health.

Gross Profit Method

An accounting technique used to estimate inventory levels and cost of goods sold by applying a consistent gross profit percentage to sales figures.