Income Statement

What is another name for the income statement?

• Profit and Loss (P&L) statement

• Balance Sheet

• Cash Flow Statement

• Statement of Retained Earnings

Which component of the income statement represents the gross income from selling goods or services?

• Revenue

• Cost of Goods Sold (COGS)

• Operating Income

• Net Income

What is the difference between a single-step and multi-step income statement?

• Single-step lists all revenues and expenses in one column, while multi-step breaks them into operating and non-operating categories.

• Single-step includes gains and losses, while multi-step excludes them.

• Single-step is used for quarterly reports, while multi-step is used for annual reports.

• Single-step focuses on net income, while multi-step focuses on gross profit.

What does Operating Income represent in an income statement?

• Profit earned from regular business operations before accounting for non-operating income, expenses, interest, or taxes.

• Net income after deducting income taxes.

• Gross profit after subtracting Cost of Goods Sold (COGS).

• Revenue generated from selling goods or services.

Which of the following is NOT typically included in the income statement?

• Other comprehensive income (OCI)

• Revenue

• Cost of Goods Sold (COGS)

• Net Income