Final answer:
The correct answer is b)IS (Income Statement). Operating income is a key financial metric that measures a company's profitability from its core operations.
Step-by-step explanation:
The correct answer is b)IS (Income Statement).
Operating income is a key financial metric that measures a company's profitability from its core operations. It represents the revenue generated from the company's primary business activities minus the expenses directly associated with those activities, such as cost of goods sold and operating expenses.
For example, if a company's revenue from sales is $1,000,000 and its operating expenses are $800,000, the operating income would be $200,000. It is reported on the Income Statement, which provides a summary of revenue, expenses, and net income for a specific period of time.