What is the correct layout for a retailer's income statement?

Question

Quizplus · Accepted Answer

The correct layout for a retailer's income statement should start with the calculation of gross profit (sales revenue minus cost of sales) followed by the deduction of expenses to arrive at the final profit figure. Option A only calculates gross profit and doesn't deduct expenses, while Option B only deducts expenses from sales revenue without considering cost of sales. Option D deducts expenses from gross profit, which is not the standard format for a retailer's income statement. Therefore, Option C is the correct choice.

What Is the Correct Layout for a Retailer's Income Statement