Why is it important to assess operating profit?

a. Operating profit represents the firms profits after consideration of all revenues, expenses and comprehensive income.

b. The figure for operating profit provides a basis for assessing the success of the firm apart from its financing and investing activities

and separate from tax considerations.

c. Operating profit represents the firms profits after consideration of all revenues and expenses.

d. Operating profit represents the firms profits after consideration ofall revenues and expenses, except for taxes.

Which item would not be classified as an operating expense?

a. Interest expense.

b. Rent expense.

c. Depreciation.

d. Repairs and maintenance.

Which financial statement presents the results of operations?

a. Balance sheet.

b. Statement of financial position.

c. Income statement.

d. Statement of cash flows.

What organization has the authority to register, inspect, and discipline auditors of all publicly owned companies?

a. Public Company Accounting Oversight Board.

b. SOX.

c. Congress.

d. FASB.