Final answer:
From the gross revenue reported in the income statement, a company typically deducts the Cost of Goods Sold, Operating Expenses, and Taxes to arrive at the net income. Dividends are paid out from the net income and are not a deduction from revenue.
Step-by-step explanation:
Understanding Revenue Deductions on the Income Statement
When a company reports revenue in its income statement, several deductions might be made from the gross revenue to arrive at the net revenue or profit. The primary deduction is the Cost of Goods Sold (COGS), which represents the direct costs attributable to the production of the goods sold by a company. Other deductions could include Operating Expenses, which are expenses required for the day-to-day functioning of the business. It is important to note that Taxes are deducted after calculating the net income (which is revenue minus COGS and Operating Expenses), and Dividends are not deducted from revenue but are paid out from net income after taxes.
Therefore, from the options given, a company would need to deduct the Cost of Goods Sold (a), Operating Expenses (b), and Taxes (c), but not Dividends (d).