Question

In a multiple-step income statement for a retail company, all of the following are included in the operating section except:

a) Cost of goods sold
b) Sales revenue
c) Operating expenses
d) Gain on sale of equipment

Answer 1

In a multiple-step income statement for a retail company, all of the following are included in the operating section except the Gain on sale of equipment.The correct answers are option (a),(b) and (c).

Step-by-step explanation:

In a multiple-step income statement for a retail company, all of the following are included in the operating section except the Gain on sale of equipment.

The operating section of an income statement includes the revenues and expenses directly related to the company's core operations. This includes the Sales revenue, which represents the company's total sales during a specific period, the Cost of goods sold, which represents the cost of producing or acquiring the goods that were sold, and the Operating expenses, which includes all other expenses related to the operation of the business, such as rent, salaries, and utilities/

However, the Gain on sale of equipment is not part of the company's core operations and should be reported separately, usually in the non-operating section of the income statement.