Which of the following metrics will not be part of a firm's historical income statements as presented in Form 10-K?
c) Gross Profit
d) Operating Profit
The income statement is one of the four financial statements prepared for a given period by any firm. The other financial statements which are also prepared by the firm are the balance sheet, the statement of change in the shareholders' equity and the cash flow statement. The income statement may be prepared as a single-step statement or a multi-step statement.
Answer and Explanation:
The correct answer to the given question is option a) EBITDA.
The metrics which are usually the part of a firm's historical income statements as presented in Form 10-K are the sales revenue, the gross profit, the operating profit, the pretax income and the net income. The EBITDA which is the earnings before interest, taxes, depreciation and amortization is usually not a part of the income statement.
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from Accounting 101: Financial AccountingChapter 2 / Lesson 2