Question

1. operating expenses are those that

a. relate to long term marketing

b. relate to day to day activities

c. relate to extraordinary items

2. which of the following items are listed as seperate line items on an income statement in order to facilitate analysis and understanding? (select all that apply)

a. a gain on sale of a major division of a company

b. an increase in the sale price by more than 20%

c. the effect of prior years of change in depreciation method

d. a loss due to fire

3. what is revenue on an income statement?

a. costs related to transportation

b. income that a competitor generates

c. costs that manufacturing generates

d. income that a company generates

4. revenues can be classified in an income statement to facilitate understanding of financial information. which of the following is a type of revenue?

a. operating revenue

b. graphic revenue

c. quick revenue

d. long-term revenue

5.

Answer 1

1. Operating expenses are Related to day to day activities.

Operating expenses are day to day related which are not directly related to manufacturing of the product.

2. A loss due to fire.

Any extraordinary items those should be shown separately in an income statement because it is not expected to re-occur.

3. Income that company generates.

Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations.

4. Operating revenue

This is generated from company's primary business operation.