Which is the correct order for items to appear on the income statement?
A) Revenues, income from operations, gross profit
B) Income before income taxes, operating expenses, gross profit
C) Revenues, net income, operating expenses
D) Gross profit, income from operations, net income

Question

Quizplus · Accepted Answer

The correct order on an income statement is: Gross profit, income from operations, and then net income. Gross profit is calculated first, followed by operating expenses to determine income from operations, and finally, net income is calculated after other revenues and expenses.

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