Which is the CORRECT order for items to appear on the income statement?
A)Revenues,operating expenses,net income
B)Cost of goods sold,revenues,net income
C)Revenues,net income,operating expenses
D)Interest expense,revenues,operating income

Question

Quizplus · Accepted Answer

The correct order for items to appear on the income statement is Revenues, operating expenses, and net income. This is the traditional format used by most companies and represents the flow of income and expenses over a given period of time. Cost of goods sold is a type of operating expense and would be included in that category. Interest expense would be listed separately as a non-operating expense. Therefore, option A is the correct order of items.

Which Is the CORRECT Order for Items to Appear on the Income