Which of the following statements regarding a multistep income statement is true?
A) When a company sells inventory for more than its cost,the difference between the sales revenue and the cost of goods sold is called the operating income.
B) A single-step income statement shows sales,gross margin,and net income.
C) Gross margin is calculated as sales revenue minus cost of goods sold.
D) Gross margin equals net income.
Correct Answer:
Verified
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