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Chapter 13 - Financial Statements and Closing Procedures
Chapter 13
Financial Statements and Closing Procedures
1. The total of the operating expenses for the period is deducted from the gross profit on sales
to determine the net income or net loss from operations.
2. The balance of the Sales Returns and Allowances account is reported as a selling expense
in Operating Expenses section of a multiple-step income statement.
3. Interest on notes payable would be listed in the Other Income section of a classified income
statement.
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31. Gross profit on sales is calculated by subtracting
32. An income statement that has one total for all revenues and one total for all expenses is
known as a
