The bottom line of an income statement shows the firm's
A) retained earnings.
B) gross profit.
C) net income or net loss.
D) owners' equity.

Question

Quizplus · Accepted Answer

The bottom line of an income statement shows the firm's net income or net loss, which is the profit or loss the company has generated during the period. The bottom line represents the final result of all revenue, cost, and expense entries that have been recorded in the income statement for the given period. Retained earnings and owners' equity are reflected on the balance sheet, while gross profit is a subtotal calculated before deducting operating expenses.

The Bottom Line of an Income Statement Shows the Firm's