Question:
In a multiple-step income statement for a retail company, all of the following are included in the
operating section except
a. Sales.
b. Cost of goods sold.
c. Dividend revenue.
d. Administrative and selling expenses.
Answer:
1. c. The operating section of a retailer’s income statement includes all revenues and costs
necessary for the operation of the retail establishment, for example, sales, cost of goods sold,
administrative expenses, and selling expenses.
In a multiple-step income statement for a retail company, all of the following are included in the
operating section except
a. Sales.
b. Cost of goods sold.
c. Dividend revenue.
d. Administrative and selling expenses.
Answer:
1. c. The operating section of a retailer’s income statement includes all revenues and costs
necessary for the operation of the retail establishment, for example, sales, cost of goods sold,
administrative expenses, and selling expenses.
