Which of the statements below is FALSE?
A)The income statement summaries and categorizes a company's revenues and expenses for that period.
B)Typically,income statements are prepared quarterly and annually for distribution outside the company,but usually monthly for internal managers.
C)The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and Taxes (EBIT).
D)The balance sheet reports the performance of the firm over the past period.It summarizes and categorizes a company's revenues and expenses for that period.

Question

Quizplus · Accepted Answer

The statement that is false is D. The balance sheet does not summarize and categorize a company's revenues and expenses for that period. Instead, it reports the company's assets, liabilities, and equity at a specific point in time.

Which of the Statements Below Is FALSE