BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Decrease stockholders’ equity, $150, 000; decreases assets, $150, 000
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Decrease assets, $250, 000; decrease stockholders’ equity $250, 000
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decrease stockholders’ equity, $250, 000; decrease assets, $150, 000; increase liabilities, $100, 000
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decrease assets, $250, 000; increase liabilities, $100, 000; decrease stockholders’ equity, $150, 000
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none of the above is correct
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Detailed explanation-1: -An income statement is one of the three major financial statements, along with the balance sheet and the cash flow statement, that report a company’s financial performance over a specific accounting period. The income statement focuses on the revenue, expenses, gains, and losses of a company during a particular period.
Detailed explanation-2: -A net loss is when total expenses (including taxes, fees, interest, and depreciation) exceed the income or revenue produced for a given period of time.
Detailed explanation-3: -The Income Statement (referred to in India as the profit and loss statement) reflects the performance of the firm over a period of time. “Income statement is a summary of a firm’s business revenues and expenses over a specified period, ending with net income or loss for the period.”