Which of the following statements concerning the income statement is not true?
A) The heading must indicate the length of time the report covers.
B) It shows the change in the entity's cash balance for the period.
C) If expenses exceed income than a loss has been incurred for the period.
D) An alternative name is the statement of financial performance.

Question

Quizplus · Accepted Answer

The income statement does not directly show the change in cash balance for the period. It shows the entity's revenue, expenses, and net income or loss for the period. However, the income statement's information is used in preparing the statement of cash flows, which does show changes in the entity's cash balance.

Which of the Following Statements Concerning the Income Statement Is