Which item is not typically included on the income statement?

• A. Fixed assets
• B. Sales
• C. Cost of goods
• D. Gross margin

Answer: (A)

The income statement shows revenues and expenses for a period to reveal profit, while fixed assets are long-term resources that appear on the balance sheet. They’re not listed as a separate line item on the income statement. What is shown on the income statement are items that directly affect profit, such as sales (revenue) and the cost of goods sold, with gross margin representing the difference between them. Depreciation of fixed assets does show up as an expense on the income statement, but the asset itself is recorded on the balance sheet. So fixed assets are not typically included on the income statement.