The net income or net loss is calculated on the:
A)balance sheet.
B)statement of owner's equity.
C)income statement.
D)None of these

Question

Quizplus · Accepted Answer

The income statement is designed to calculate the net income or net loss by subtracting the total expenses from the total revenue earned during the period. The balance sheet reports the assets, liabilities, and owner's equity at a specific point in time, and the statement of owner's equity shows the changes in the owner's equity account during a period. Therefore, the correct answer is the income statement.

The Net Income or Net Loss Is Calculated on The