Assume accrual basis accounting is used.Which of the following statements about income statement accounts is correct?
A) Costs incurred to help generate revenue are only reported as expenses on the income statement if they are paid in cash in the same period as the revenue received.
B) Revenue accounts are shown after the amount of expense accounts on the income statement.
C) Revenue accounts include Cash, Accounts Receivable, and Unearned Revenue.
D) There is no Net Income account.

Question

Quizplus · Accepted Answer

In accrual basis accounting, net income is calculated as the difference between total revenues and total expenses, but there is no specific "Net Income" account on the income statement.

Assume Accrual Basis Accounting Is Used