BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the income statement is sometimes called the statement of operations
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the income statement reports revenues, expenses, and liabilities
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the income statement reports only revenue for which cash was received at the point of sale
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the income statement reports the financial position of a business at a particular point in time
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Detailed explanation-1: -a) The income statement is sometimes called the statement of operations. The income statement shows how revenues were generated and what expenses were incurred in the previous period. The statement is also referred to as a profit and loss statement (P&L) because it reports earnings to stakeholders.
Detailed explanation-2: -The statement which is true regarding income statement is that the income statement is sometimes called the statement of operations.
Detailed explanation-3: -The income statement, along with balance sheet and cash flow statement, helps you understand the financial health of your business. The income statement is also known as a profit and loss statement, statement of operation, statement of financial result or income, or earnings statement.
Detailed explanation-4: -An income statement shows a company’s revenues, expenses and profitability over a period of time. It is also sometimes called a profit-and-loss (P&L) statement or an earnings statement. It shows your: revenue from selling products or services.
Detailed explanation-5: -Answer and Explanation: The given statement “the income statement reports the financial position of a company at a specific point in time” is false. It is the balance sheet which given the financial position of of a company as at a specific point of time.