Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Option A is incorrect because a single-step income statement is a simplified version of an income statement that includes only two sections: revenues and expenses. Option C is incorrect because salaries of office employees would be grouped with administrative expenses, not selling expenses. Option D is incorrect because option A and C are incorrect. Option B is correct because it is a fundamental principle of accounting that in order to earn a net income, a business must have gross profits that are greater than their operating expenses.

Which of the Following Statements Is Correct