The income statement is a statement of:
A)profit and loss, receipts and sales, at some instant in time.
B)assets, liabilities, and net worth, at some instant in time.
C)sales receipts minus proper cost charges against sales, thereby showing earnings over a period of time.
D)changes in the value of assets, liabilities, and capital between two periods of time.
E)wages and salaries paid to employees.

Question

Quizplus · Accepted Answer

The income statement is also known as a profit and loss statement because it shows the profit or loss generated by a business over a certain period of time. It does this by deducting all relevant expenses from total revenues. Therefore, option C: "sales receipts minus proper cost charges against sales, thereby showing earnings over a period of time" is the correct answer.

The Income Statement Is a Statement Of