Problem 1: The income statement in which the total of all expenses is deducted from the total of all revenues is termed:
A. Multiple-step form
B. Single-step form
C. Account form
D. Report form
Problem 2: On a multiple-step income statement, the excess of net sales over the cost of merchandise sold is called:
A. Operating income
B. Income from operations
C. Gross profit
D. Net income
Problem 3: Which of the following expenses would normally be classified as "Other expense" on a multiple-step income statement?
A. Depreciation expense
B. Sales salaries expense
C. Insurance expense
D. Interest expense