1) When speaking about the income statement, financial analysts often talk about “above the line” and “below the line” items. What specific item is “the line”?

2) What three (or four) items can appear below the line and how are these items reported differently than items that appear above the line?

3) What are the two primary components of pretax income and what differentiates these items from one another?

4) What are the two primary components of operating income?