Final answer:
A)Shareholder's equity is not on the income statement; it is reported on the balance sheet. The income statement includes items like Earnings per share, Non-operating expenses, and Gross margin on sales.
Step-by-step explanation:
Of the options provided, Shareholder's equity is not an item found on the income statement. An income statement is one of the core financial statements used in accounting to report a company's financial performance over a specific accounting period.
The income statement focuses on a company's revenues, expenses, profits, or losses. Shareholder's equity, however, is reported on a different financial statement called the balance sheet, which shows the company's assets, liabilities, and equity at a specific point in time.
Earnings per share (EPS) is typically provided at the bottom of the income statement and is calculated as net income divided by the number of outstanding shares. It measures how much money a company makes for each share of its stock.
Non-operating expenses are costs that are not related to the company's primary business operations and can include items like interest expenses or losses from the sale of assets.
These are also reported on the income statement. Gross margin on sales, which is sales revenue minus the cost of goods sold, provides insight into the profitability of a company's core business activities and is also included on the income statement.