5 Flashcards
1
Q
What are selling expenses?
A
Costs to market and distribute products and services such as advertising of merchandise, store supplies and rent, and delivery of goods to customers.
2
Q
What are general and administrative expenses?
A
Costs to administer a company’s overall operations such as office salaries, office equipment, and office supplies.
3
Q
What is a multiple-step income statement?
A
A statement that details net sales and expenses, consisting of three main parts.
4
Q
What is gross profit?
A
Gross profit = net sales - COGS.
5
Q
What is income from operations?
A
Income from operations = gross profit - operating expenses.
6
Q
What is net income?
A
Net income = income from operations + nonoperating items.
