Solved

Use This Information to Answer the Following Question If the Income Statement Were Prepared in a Multistep Form,excess

Question 108

Multiple Choice

Use this information to answer the following question.  Alcorn & Zeto Company Income Statement For the Year Ended December 31, 2010 Revenues  Net sales $100,000 Dividend income 7,000 revenues $107,000 Costs and expenses  Costs of goods sold $30,000 Selling expenses 10,000 General and administrative expenses 13,750 Interest expense 6,250 Total costs and expenses 60,000 before income taxes $47,000 Income taxes 19,500 Net income $27,500\begin{array}{c}\text { Alcorn \& Zeto Company}\\\text { Income Statement}\\\text { For the Year Ended December 31, 2010}\\\begin{array}{lrr}\text { Revenues } & \\\text { Net sales } & \$ 100,000 \\\text { Dividend income } & 7,000 \\\text { revenues } &&\$107,000\\\text { Costs and expenses } & \\\text { Costs of goods sold } & \$ 30,000 \\\text { Selling expenses } & 10,000 \\\text { General and administrative expenses } & 13,750 \\\text { Interest expense } & \underline{ 6,250} \\\text { Total costs and expenses } && \underline{60,000} \\\text { before income taxes } && \$ 47,000 \\\text { Income taxes } && \underline{ 19,500} \\\text { Net income } && \underline{ \$ 27,500}\end{array}\end{array} If the income statement were prepared in a multistep form,excess of other expenses over other revenues would be


A) $7,000.
B) $750.
C) $13,250.
D) $6,250.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents