Which of the following statements about an income statement is TRUE?
A) An income statement provides information on an organisation's profitability at a certain point in time.
B) An income statement deducts liabilities from assets to determine shareholders' equity.
C) The revenues may include contributions from owners.
D) For revenue to be included, it is not necessary for cash to have been received.

Question

Quizplus · Accepted Answer

An income statement records revenues and expenses over a period of time, and revenue can be recognized when earned, not necessarily when cash is received, following the accrual accounting principle.

Which of the Following Statements About an Income Statement Is