In what order do the following items appear in a company's statement of financial performance?
1. Tax expense
2. Revenue
3. Gross profit
4. Operating profit
5. Cost of sales

Question

In what order do the following items appear in a company's statement of financial performance? 
1. Tax expense
2. Revenue
3. Gross profit
4. Operating profit
5. Cost of sales

Quizplus · Accepted Answer

The correct order in a company's statement of financial performance typically starts with Revenue (2), followed by Cost of Sales (5), which is subtracted from Revenue to calculate Gross Profit (3). Operating Profit (4) comes after considering operating expenses, and finally, Tax Expense (1) is accounted for to determine net profit.

In What Order Do the Following Items Appear in a Company's