Answer the following statements true (T) or false (F)
1) In a multi-step income statement, interest revenue and interest expense are included in operating income.
2) On a multi-step income statement, merchandisers report operating expenses in two categories—selling expenses and administrative expenses.
3) Sales Revenue is recorded net of sales discounts, so it is labeled Net Sales Revenue on the income statement.
4) On a multi-step income statement, Sales Discounts Forfeited is reported as part of operating income.
5) Net sales revenue is sales revenue less sales discounts and estimated sales returns and allowances.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. TRUE
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Indicate whether the statement is true or false
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