Farrell Company has rent expense,wages expense,and utilities expense.Where will the company present these expenses on the income statement?

A) As a component of net sales.
B) As a component of gross profit.
C) After income from operations.
D) Prior to income from operations.

Question

Abdulrahman Al-Mutawa · Accepted Answer

Final Answer : D, Explanation :  Rent expense, wages expense, and utilities expense are typically presented prior to income from operations on the income statement. These expenses are part of operating expenses, which are deducted from gross profit to calculate income from operations.

Farrell Company has rent expense,wages expense,and utilities expense.Where will the company present these expenses on the income statement?

A) As a component of net sales.
B) As a component of gross profit.
C) After income from operations.
D) Prior to income from operations.

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Learning Objectives

Related questions

Farrell Company has rent expense,wages expense,and utilities expense.Where will the company present these expenses on the income statement?A) As a component of net sales.B) As a component of gross profit.C) After income from operations.D) Prior to income from operations.

Definitions

Learning Objectives

Learning Objectives

Related questions

Farrell Company has rent expense,wages expense,and utilities expense.Where will the company present these expenses on the income statement?

A) As a component of net sales.
B) As a component of gross profit.
C) After income from operations.
D) Prior to income from operations.