The major elements of the income statement are

a. revenue, cost of goods sold, selling expenses, and general expense.

b. operating section, nonoperating section, discontinued operations, extraordinary items, and cumulative effect.

c. revenues, expenses, gains, and losses.

d. revenues, irregular items, and general expenses

Question

Business

Digger

21 November, 09:30

The major elements of the income statement are

a. revenue, cost of goods sold, selling expenses, and general expense.

b. operating section, nonoperating section, discontinued operations, extraordinary items, and cumulative effect.

c. revenues, expenses, gains, and losses.

d. revenues, irregular items, and general expenses

+5

Answers (1)

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Khloe Rollins · Answer 1

Answer: Option C. Revenues, expenses, gains and losses.

Explanation:

Elements of income statement refers to generally accepted accounting practices (GAAP) which indicates not only income and expenses from continuing operations (which basically is revenue minus expenses), but also income from various sources, such as the gain or loss that results when a company sells an asset. The major elements of income statement are;

1. Revenue: Gross receipts earned by the

company selling its goods or services

2. Expenses: The costs to the company to

earn the gross receipts

3. Gains: Income from non-business-related

transactions, such as selling a company

asset

4. Losses: The flip side of gains, such as

losing money when selling the company

car.