A multiple step income statement has several measures of profit that do NOT include ________.
A) operating income
B) gross margin
C) income before taxes
D) cost of sales

Question

Quizplus · Accepted Answer

The multiple step income statement includes measures such as gross margin, operating income, and income before taxes. However, cost of sales is considered an expense and is subtracted from revenue to calculate gross margin, so it is not a measure of profit on its own. Therefore, D is the best answer.

A Multiple Step Income Statement Has Several Measures of Profit