What are the major categories within an income statement?
A) Operating costs and profits, investing costs and profits, and financing costs and profits
B) Current revenue, long-term revenue, and net revenue
C) Revenue, sales, and income
D) Assets, liabilities, and owners' equity
E) Revenues, cost of revenues, operating expenses, and net income

Question

Quizplus · Accepted Answer

The major categories within an income statement are revenues, cost of revenues, operating expenses, and net income. Option A refers to different types of profits and costs, but the income statement only covers revenues and expenses. Option B does not accurately reflect the categories within the income statement. Option C only includes revenue-related categories and does not cover expenses. Option D refers to categories in the balance sheet, not the income statement.

What Are the Major Categories Within an Income Statement