Chapter 4 - Income Statement and Related Information - Review and Practice - Questions - Page 181: 36

One Statement Format: First, gross profit is figured out using the procedure “the total sales revenue-cost of goods sold”. Second, the net income is computed by deducting the operating expenses from the gross profit. Third, other comprehensive income is added to the net income from step three to arrive at the comprehensive income. Two Statement Format: Step one focuses on the computation of the net income. Step two deals with the summation of the net income and the other comprehensive income; the result of the sum is the comprehensive income.

One Statement Format: First, gross profit is figured out using the procedure “the total sales revenue-cost of goods sold”. Second, the net income is computed by deducting the operating expenses from the gross profit. Third, other comprehensive income is added to the net income from step three to arrive at the comprehensive income. Two Statement Format: Step one focuses on the computation of the net income. Step two deals with the summation of the net income and the other comprehensive income; the result of the sum is the comprehensive income.