Which of the following statements concerning the income statement is true?
A)It measures performance over a speciﬁc period of time.
B)It determines after-tax income of the ﬁrm.
C)It includes deferred taxes.
D)It treats interest as an expense.
E)All of the above.

Question

Quizplus · Accepted Answer

All of the choices are correct regarding the income statement. It measures a company's financial performance over a specific period (usually a fiscal quarter or year), determines the after-tax income by accounting for all revenues and expenses including taxes, includes deferred taxes in its calculations, and treats interest as an expense that is deducted from revenues to arrive at net income.

Which of the Following Statements Concerning the Income Statement Is