Operating income is calculated as net sales minus: A. Ultilities expense. B. Sal

Question

Operating income is calculated as net sales minus: A. Ultilities expense. B. Salaries expense. C. Cost of goods sold. D. All of the other answer are subtracted from net sales to calculate operating income. The cost inventory sold during the current year classified as an___in the___ A. Assets, balance sheet. B. Expense, income statement. C. Liability, balance sheet. D. Revenue, income statement. A company's ajustment for uncollectible account at year-end would include. A. Debits to bad debt expense. B. Credit to Accounts receivable. C. Debit to accounts receivable. D. Debit to allowance for Uncollectible Accounts.

Explanation / Answer

1.

Operating income is Net sales less Cost of goods sold less operating expenses like salaries , utilities,depreciation etc.

So All options from A to A are subtracted frm net sales to calculate operationg income.

Correct option is D.

2. Cost if Inventory sold during the current year is treated as an expense in the Income Statement.

So correct option is B. Expense, income statement.

3. A company's ajustment for uncollectible account at year-end entry is

Dr Bad debt Expense

Cr Allowance for Uncollectibel a/cs

So correct option is A. Debits to bad debt expense.

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