INCOME STATEMENT

The income statement shows the results of operations as well as the financial standing of a company as of the given date.

• True

• False

The multi-step income statement presents expenses according to its function.

• True

• False

The multi-step income statement is used only in a service type of business.

• True

• False

Sales are the main sources of revenue in a merchandising business.

• True

• False

Net income is sales less cost of goods sold

• True

• False

Administrative Expenses are the expenses necessary in the management of the office.

• True

• False

Selling Expenses are the expenses directly related to the selling of a product or service.

• True

• False

Other income including gains is income derived from sources other than the company's main line of business.

• True

• False

Net Purchases are purchases less purchases returns and allowances and purchase discount

• True

• False

Interest expense is also known as finance cost.

• True

• False