What are the items reported on the income statement of an entity?



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

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