Accounting for IGCSE & O level - Final Statements (Section 12 - No. 20)
Which of the following statements accurately describe the vertical format of an income statement?
It presents the sales revenue at the bottom.
It presents the cost of goods sold above the gross profit.
It is prepared with the financial position.
It lists revenues, then subtracts costs and expenses sequentially to arrive at net profit.
Explication
The vertical format lists the items from sales revenue down to the net profit.