When analyzing a company's income statement, a fact to remember is that:
A)cost of products is another term for gross profit.
B)operating expenses are the costs of everyday operations such as selling expenses.
C)companies are not allowed to offset items such as interest income and interest expense against each other.
D)net income is a very important number because it communicates whether the company's core business operations were profitable.

Question

Quizplus · Accepted Answer

Operating expenses refer to the costs incurred in the day-to-day functioning of a business, such as selling, general, and administrative expenses.

When Analyzing a Company's Income Statement, a Fact to Remember