Which of the following best describes income from operations?
A) It includes the results of discontinued operations.
B) It includes extraordinary items.
C)It is sales minus cost of goods sold and income tax expense.
D)It is net sales minus cost of goods sold and operating expenses.

Question

Quizplus · Accepted Answer

Income from operations is the revenue generated from a company's primary business activities, minus the operating expenses and cost of goods sold. It does not include the results of discontinued operations or extraordinary items, which are reported separately on the income statement. Therefore, option D is correct.

Which of the Following Best Describes Income from Operations