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In very few cases when a trader incurs wages expense for minor alteration in the goods to convert them into selling then wages might reasonably be shown before gross profit as part of cost of sales.
Definition of income and expense statement. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of three statements used in both corporate finance including financial modeling and accounting. Wages expense is normally shown in the income statement after gross profit is calculated.
An Income Statement Is A Financial Statement That Reports A Company S Financial Performance Over A Accounting And Finance Bookkeeping Business Income Statement
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