Which of the following statements regarding the income statement is INCORRECT?
A)The income statement shows the retained earnings and expenses at a given point in time.
B)The income statement shows the flow of earnings and expenses generated by the firm between two dates.
C)The last or "bottom" line of the income statement shows the firm's net income.
D)The first line of an income statement lists the revenues from the sales of products or services.

Question

Quizplus · Accepted Answer

The income statement shows the revenues and expenses generated by the firm between two dates, not at a given point in time. Retained earnings are shown on the balance sheet, which is a snapshot of the firm's financial position at a given point in time.

Which of the Following Statements Regarding the Income Statement Is