Which of the Following Statements Is True

question 47

Multiple Choice

Which of the following statements is true?

• A)Expenses are listed before revenues on the income statement.
• B)Operating income is listed before net income on the income statement.
• C)The income statement demonstrates the effect of net income on the balance sheet.
• D)Net income is listed before net operating income on the income statement.

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Definitions:

Commission

A payment made to an employee or agent based on the value of the sale completed, often a percentage of the sale amount.

Principals

The original amount of money invested or loaned, not including interest or earnings.

Net Proceeds

The amount sent to the consignor as a result of consignment sales; gross proceeds minus charges.

Commission

A fee or percentage given to a salesperson, agent, or broker for facilitating or completing a sale or transaction.