- CFA Exams
- CFA Level I Exam
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 21. Understanding Income Statements
- Subject 1. Components and Format of the Income Statement
CFA Practice Question
Net income is ______.
A. sales revenue - COGS
B. sales revenue - COGS - operating expenses
C. income before taxes - income taxes
Explanation: Sales revenue - COGS is gross profit.
Gross profit - operating expenses is income from operations.
Net income is after-tax income available to all shareholders.
Gross profit - operating expenses is income from operations.
Net income is after-tax income available to all shareholders.
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