Matching Definitions with Income Statement Related Terms

Following are terms related to the income statement. Match each definition with its related term by entering the appropriate letter in the spaceprovided.

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Definitions Terms (1) Net income (2) Income tax expense on operations A. Revenues + Gains - Expenses - Losses including effects of discontinued operations and extraordinary items (if any). B. Income Tax on Revenues - Operating Expenses. C. Sales Revenue - Cost of Goods Sold (3) Income before extra- ordinary items (4) Cost of goods sold D. Sales of services for cash or on credit. E. Amount of resources used to purchase or produce the goods that were sold during the reporting period. F. Total expenses directly related to operations. (5) Operating expenses (6) Gross margin on sales (7) EPS G. Income before all income tax and before discontinued (8) Interest expense operations and extraordinary items (if any). H. Cost of money (borrowing) over time. I. Item that is both unusual and infrequent. J. Net Income + Average Shares Outstanding. K. Income before unusual and infrequent items and the related income tax. (9) Service revenue (10) Pretax income from operations L. None of the above.