Question

What are the two main keys to building a segmented income statement?

A) Revenue and Expenses

B) Gross Profit and Net Profit

C) Cost of Goods Sold (COGS) and Operating Expenses

D) Segmentation and Income Categories

Answer 1

The two main keys to building a segmented income statement are revenue and expenses.

Step-by-step explanation:

The two main keys to building a segmented income statement are revenue and expenses.

Revenue represents the income generated by a company through the sale of its products or services. It is the total amount of money received from customers or clients.

Expenses, on the other hand, are the costs incurred by a company in the process of generating revenue. They include items such as materials, labor, rent, utilities, and marketing expenses.