The major components of the income statement are as follows:

1- Revenues, 2- Income from continuing operations, 3- Earnings per share, 4- Results from discontinued operations, 5- operating income, 6- Income tax, 7- COGS.

In what sequence (order) do they normally appear on the income statement?

Select one: a. 1-7-5-6-2-4-3 b. 1-5-7-2-6-4-3 c. 1-7- 2-5-6-4-3 d. 2-7-1-3-4-5-6

Mohammad Hani Muhanna

The major components of the income statement are as follows: ...

On June 30, a company paid $3,600 for insurance premiums for the current year and debited the amount to Prepaid Insurance. At December 31, the bookkeeper forgot to record the amount expired (forget to do the adjusting entry). The omission has the following effect on the financial statements prepared December 31: Select one: a. overstates both owners equity and assets. b. understates net income. c. overstates owners' equity. d. overstates assets.