LO 2.1Which of the following represents the components of the income statement for a service business?

Sales Revenue – Cost of Goods Sold = gross profit
Service Revenue – Operating Expenses = operating income
Sales Revenue – Cost of Goods Manufactured = gross profit
Service Revenue – Cost of Goods Purchased = gross profit

Respuesta :

Answer:

Service Revenue – Operating Expenses = operating income

Explanation:

In the case of service business, the following components of the income statement are service revenue instead of sales revenue and the operating expenses  

In mathematically,  

Operating income = Service revenue - operating expenses

If we deduct the operating expenses from the service revenue, then the operating income can come