A Properly Constructed Segmented Income Statement in a Contribution Format

question 78

Multiple Choice

A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

• A)$315,000
• B)$69,000
• C)-$177,000
• D)$513,000

---

Definitions:

Pension Reserves

Pension reserves are funds that are set aside by employers or governments to support future pension benefits for their employees or citizens.

Nonresidential Real Estate

Refers to properties used solely for business purposes or to provide a workspace rather than as a living space, which includes offices, retail spaces, and industrial properties.

Residential Real Estate

Property intended for housing, such as single-family homes, condominiums, and townhouses, as opposed to commercial or industrial property.

Inventories

The raw materials, work-in-progress goods, and finished goods that a company holds for the purpose of sale in the future.