The income statement captures an entity's
A) financing activities.
B) investing activities.
C) operating activities.
D) interrelationship between activities.

Question

Quizplus · Accepted Answer

The income statement captures an entity's operating activities which include revenues, expenses, gains, and losses from its primary business operations. Financing activities and investing activities are captured in the statement of cash flows. The income statement does not show the interrelationship between activities, but rather focuses on the entity's financial performance during a specific period of time.

The Income Statement Captures an Entity's