Assume an income statement with the following classifications: Revenues Cost of goods sold Distribution expenses General & administrative expenses Other revenues and expenses Income tax on income from continuing operations Gain from disposal of discontinued operations Income tax on gain from discontinued operations None of the above Indicate by letter how each of the following should be classified: Advertising expense Amortization of a patent held as an investment Cash dividend received on short-term investment
Assume an income statement with the following classifications:
Revenues
Cost of goods sold
Distribution expenses
General & administrative expenses
Other revenues and expenses
Income tax on income from continuing operations
Gain from disposal of discontinued operations
Income tax on gain from discontinued operations
None of the above
Indicate by letter how each of the following should be classified:
Advertising expense
Amortization of a patent held as an investment
Cash dividend received on short-term investment
Freight on sales
Income tax effect of loss on sale of plant
Income tax on gain on sale of short-term investment in securities
Interest expense
Interest revenue
Loss on sale of patent
Dividend revenue from investment
Salary of company president
Sales
Sales returns
Services sold
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