- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 2. Analyzing Income Statements
- Subject 6. Income Statement Ratios and Common-Size Analysis
CFA Practice Question
The first expense deduction from sales on the multiple-step format of the income statement is ______.
B. advertising expense
C. depreciation and amortization
A. cost of goods sold
B. advertising expense
C. depreciation and amortization
Correct Answer: A
The first expense deduction from sales is cost of goods sold, which is also called cost of sales.
User Contributed Comments 2
| User | Comment |
|---|---|
| albert2008 | Isn't COGS the first deduction for single step as well? |
| JGoff | COGS = Cost Of Goods Sold |