Given the information in the table below, what is the company's gross profit?
Sales revenue $ 350,000
Accounts receivable $ 280,000
Ending inventory $ 230,000
Cost of goods sold $ 180,000
Sales returns $ 50,000
Sales discounts $ 20,000
A) $280,000.
B) $170,000.
C) $50,000.
D) $100,000.
Answer: $100,000.
Which of the following items may be classified as nonoperating revenues and expenses?
A) Interest expense.
B) Loss on the sale of equipment.
C) Interest revenue.
D) All of the other answers are classified as nonoperating revenues and expenses.
Answer: All of the other answers are classified as nonoperating revenues and expenses.
The type of income statement that reports a series of subtotals such as gross profit, operating income, and income before taxes is a ________ income statement.
A) Single-step.
B) Subtotaled.
C) Multiple-step.
D) Classified.
Answer: Multiple-step.
