A suitable format for the income statement for a medium-sized furniture store operating as a partnership would be:
A) sales - cost of sales = gross profit.
B) income + expenses = profit.
C) sales - cost of sales = gross profit - expenses = profit.
D) income - expenses = profit.

Question

Quizplus · Accepted Answer

The income statement for a partnership should include both the gross profit and expenses to determine the overall profit. Therefore, option C is the most appropriate as it includes sales minus cost of sales, which gives the gross profit, and then subtracts added expenses to determine the net profit.

A Suitable Format for the Income Statement for a Medium-Sized