Which of the following statements regarding the income statement is INCORRECT?
A) The income statement shows the cash flows and expenses at a given point in time.
B) The income statement shows the flow of revenues and expenses generated by a firm between two dates.
C) The last or "bottom" line of the income statement shows a 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 flow of revenues and expenses generated by a firm between two dates, but it does not show cash flows at a given point in time. The statement of cash flows would provide information on cash flows at a specific point in time.

Which of the Following Statements Regarding the Income Statement Is