Operating income is defined as: Multiple Choice Gross Profit minus Operating Expenses. Sales Revenue minus Cost of Goods Sold. All revenues minus all expenses. Income before Income Tax Expense.

Gross profit minus operating expenses

Explanation:

Operating income is the income that is being anticipated after all expenses have been deducted from the gross income . In other words, it is the income after interest and taxes have been taken out from revenue.

Operating income refers to the measurement of amount that is gained from business operation after taken into consideration operating expenses such as depreciation, cost of goods sold and wages.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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