The operating expenses section of a multiple-step statement of income for a merchandising company would not include
A)freight out.
B)utilities expense.
C)cost of goods sold.
D)loss on sale of equipment.

Question

Quizplus · Accepted Answer

Cost of goods sold is not included in the operating expenses section of a multiple-step income statement for a merchandising company; it is reported separately above operating expenses to calculate gross profit.

The Operating Expenses Section of a Multiple-Step Statement of Income