Explain why the income statement can also be called a "profit-and-loss (P&L) statement."(Select from the drop-down menus.)

In reviewing the income statement of a profitable company, one can see that it begins with

at the top and ends with

operating expenses

interest expense

net profits before taxes

operating profits (EBIT)

taxes

cost of goods sold

sales revenue

gross profits

net profits after taxes

net loss after taxes

at the bottom. Had there been a loss for the year, the final result would have been a

sales revenue

cost of goods sold

interest expense

net profits after taxes

net loss after taxes

net profits before taxes

gross profits

taxes

operating expenses

operating profits (EBIT)

.