Q11. Income statement
What are the items reported on the income statement of an entity?
A11. Examples of items reported on the income statement include the following:
(1) Sales
(2) Cost of goods sold
(3) Gross profit
= Sales – Cost of goods sold
(4) Operating expenses
(5) Operating income
= Gross profit – Operating expenses
(6) Non-operating income
(7) Non-operating expenses
(8) Income before income taxes
= Operating income
+ Non-operating income
– Non-operating expenses
(9) Income taxes expense
(10) Net income
= Income before income taxes – Income taxes expense
© AccountingInfo.com