A company's chart of accounts includes, in part, the following account numbers and corresponding account titles: Which accounts would affect operating income?

Question

A company's chart of accounts includes, in part, the following account numbers and corresponding account titles:  Which accounts would affect operating income?

Quizplus · Accepted Answer

Operating income is usually calculated by subtracting operating expenses from operating revenues. Therefore, the accounts that would affect operating income are those related to operating revenues (typically recognized in accounts numbered 3) and operating expenses (typically recognized in accounts numbered 4 and 7), along with any other accounts with expenses or revenues directly related to the company's operations (such as account number 9). Choice C includes all of these account numbers.

A Company's Chart of Accounts Includes, in Part, the Following