The complete income statement is separated into the following sections:

• A. Cash flows from operating, investing, and financing activities
• B. Current and non-current sections
• C. Operating, non-operating, and income tax sections
• D. Assets, liabilities, and equity sections

Answer: (C)

Verified step by step guidance

1. Understand the structure of the income statement: The income statement is primarily divided into sections that reflect the company's performance during a specific period. It includes revenues, expenses, and net income.
2. Recognize the correct sections: The income statement is typically divided into three main sections: Operating activities (related to the core business operations), Non-operating activities (such as interest income or expense, and gains/losses from investments), and Income tax (taxes incurred on the company's earnings).
3. Differentiate the income statement from other financial statements: The income statement focuses on profitability, while the balance sheet includes assets, liabilities, and equity, and the cash flow statement includes operating, investing, and financing activities.
4. Clarify the purpose of each section: Operating activities reflect the company's primary business operations, non-operating activities include items not directly related to core operations, and the income tax section accounts for taxes on earnings.
5. Review examples for each section: For operating activities, include sales revenue and cost of goods sold. For non-operating activities, include interest expense or investment income. For income tax, include the tax expense calculated based on taxable income.