LO 2.1Which of the following represents the components of the income statement for a service business?

Sales Revenue â€" Cost of Goods Sold = gross profit

Service Revenue â€" Operating Expenses = operating income

Sales Revenue â€" Cost of Goods Manufactured = gross profit

Service Revenue â€" Cost of Goods Purchased = gross profit

Service Revenue â€" Operating Expenses = operating income

Explanation:

In the case of service business, the following components of the income statement are service revenue instead of sales revenue and the operating expenses

In mathematically,

Operating income = Service revenue - operating expenses

If we deduct the operating expenses from the service revenue, then the operating income can come