Which items are considered "above-the-line" in an income statement?

The term "above-the-line" in an income statement typically refers to items that are part of the calculation of gross profit and operating income. This includes revenue from sales and the operating income calculated from that revenue after subtracting the cost of goods sold (COGS) and operating expenses.

In this context, operating income represents the profit realized from regular business operations, not including any irregularities or extraordinary items. Revenue, as the total amount of sales generated before any expenses are deducted, is also considered above-the-line. Therefore, since this option lists both operating income and revenue, it accurately reflects the items that fall above the line in an income statement, serving as the starting point for calculating net income after accounting for below-the-line items like taxes and extraordinary expenses.

Other options do not accurately represent the "above-the-line" items, as net income is a summary figure calculated after all expenses have been deducted, extraordinary items are non-recurring and typically found below operating income, and income tax expenses are considered below-the-line because they are subtracted after operating income has been determined.