Which of the following financial statements reports expenses in decreasing order of their amounts,with the largest expense first?
A) Statement of cash flows
B) Income statement
C) Statement of owner's equity
D) Balance sheet

Question

Quizplus · Accepted Answer

The income statement reports expenses in decreasing order of their amounts, with the largest expense first. This is because the income statement is designed to show the company's profitability during a specific period of time by subtracting expenses from revenues. The larger expenses will have a greater impact on net income, which is the ultimate measure of profitability. The other statements listed do not report expenses in this manner.

Which of the Following Financial Statements Reports Expenses in Decreasing