The income statement of a trading entity differs from that of a service entity as it needs to incorporate the expense associated with inventory.
Which of these would not be recorded as increasing income today?
a. Credit sale
b. Future sale
c. Cash sale
d. Cash paid for half and the rest due in a month
For a retailing or manufacturing entity, profit is equal to gross profit less:
a. cost of sales.
b. all expenses other than cost of sales.
c. taxation expense.
d. all expenses.