Gains and losses appear on which of the financial statements listed below?
A) the cash flow statement
B) the income statement
C) the retained earnings statement
D) the balance sheet

Question

Quizplus · Accepted Answer

Gains and losses are reported on the income statement, which shows a company's revenue, expenses, and net income or loss for a specific period of time. The other statements listed may contain elements related to gains and losses, but they are not the primary focus of those statements. The cash flow statement shows the inflows and outflows of cash during a given period, the retained earnings statement shows changes in the company's retained earnings balance over time, and the balance sheet provides a snapshot of the company's assets, liabilities, and equity at a specific point in time.

Gains and Losses Appear on Which of the Financial Statements