When creating the income statement, which of the following statements is accurate?
A) revenues, minus general operating expenses = gross profit.
B) revenues, minus tax expense = gross profit.
C) revenues, minus depreciation expense = gross profit.
D) revenues, minus cost of goods sold = gross profit.

Question

Quizplus · Accepted Answer

The first line item on the income statement reports revenues earned over a period of time. The cost of goods sold is subtracted from revenues in order to determine gross profit.

When Creating the Income Statement, Which of the Following Statements