The major elements of the income statement are
A) revenue, cost of goods sold, selling expenses, and general expense.
B) operating section, nonoperating section, discontinued operations and cumulative effect.
C) revenues, expenses, gains, and losses.
D) All of these.

Question

Quizplus · Accepted Answer

The major elements of the income statement are revenues, expenses, gains, and losses. Revenue is the inflow of economic resources as a result of the sale of goods and services. Expenses are the outflow of economic resources as a result of the production and sale of goods and services. Gains and losses refer to the increase or decrease of assets or liabilities resulting from transactions outside the normal course of business operations.

The Major Elements of the Income Statement Are