Which of the following is not a purpose of an income statement?
A)To determine how much money the company owes its suppliers.
B)To aid in the projection of future results.
C)To aid in the assessment of a company's performance over a period of time.
D)To aid in the calculation of earnings per share for the period.

Question

Quizplus · Accepted Answer

The purpose of an income statement is to show the financial performance of a company over a period of time, including revenue, expenses, and net income. It is not intended to determine how much money the company owes its suppliers, which would be shown on a separate document such as an accounts payable report.

Which of the Following Is Not a Purpose of an Income