Which of the Following Is/are True

question 41

Multiple Choice

Which of the following is/are true?

• A)After cost of sales, the income statement typically shows deductions for other expenses associated with operations (other operating expenses).
• B)Many firms present a subtotal called operating income or operating profit, the difference between revenues and expenses associated with core operating activities.
• C)Two common types of operating expenses are selling, general, and administrative expenses (SG&A) and research and development expenses (R&D).
• D)All of the above are true.
• E)None of the above are true.

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares of the issuing company, rather than as cash.

Additional Paid-In Capital

The excess amount paid by investors over the par value of the stock during the issuance of shares.

Treasury Stock

Securities that were initially distributed to the public but later repurchased by the issuer, thus lowering the volume of shares in circulation.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest held by stockholders.