Lo 2.1which of the following represents the components of the income statement for a service business?

sales revenue – cost of goods sold = gross profit
service revenue – operating expenses = operating income
sales revenue – cost of goods manufactured = gross profit
service revenue – cost of goods purchased = gross profit

Service Revenue – Operating Expenses = operating income

Explanation:

In the case of service business, the following components of the income statement are service revenue instead of sales revenue and the operating expenses  

In mathematically,  

Operating income = Service revenue - operating expenses

If we deduct the operating expenses from the service revenue, then the operating income can come