What is the first item in an income statement used to determine the net income of a firm?
A) Earnings before tax
B) Operating costs
C) Net sales
D) Gross profit
E) Retained earnings

Question

Quizplus · Accepted Answer

Net sales are usually the first item on an income statement as they represent the revenue a company has generated during a specific period before accounting for any expenses, taxes, or other deductions. This figure is used to determine the gross profit and subsequently, the net income.

What Is the First Item in an Income Statement Used