Income Statement

The financial statement that reports net income or net loss

• Income Statement

• Balance Sheet

• Statement of Cash Flows

• Statement of Changes in Owner's Equity

Drawing a double line does not apply to the Income Statement

• True

• False

To prepare an Income Statement financial statement, you take the information from which columns of the work sheet

• Trial Balance

• Balance Sheet

• Income Statement

• Account Names

Which Financial Statement identifies company's financial position?

• Income Statement

• Statement of Changes in Owner's Equity

• Statement of Cash Flows

• Balance Sheet

Which is not included on the income statement?

• heading

• revenue for the period

• liabilities for the period

• Profit and loss

Which statement shows how the owner’s financial interest changes during the accounting period?

• Balance Sheet

• Statement of Cash Flows

• Statement of Changes in Owner's Equity

• Profit-and-Loss Statement

Q. Managers and owners use these to make their business decisions

• The Work Sheet

• Financial Statements

• Accounting Equation

• The Trial Balance

An expense is..

• money Owed to the Business

• money a business spends on the general operation of business

• money the business owes to other organizations and people

• None of the above

When creating an income statement, the interest on a loan is

• Revenue

• Liability

• Expense

• Asset

What happens to the retained profit in the income statement?

• Transferred and added to capital in balance sheet

• Transferred and added to liabilities in the balance sheet

• Transferred and subtracted to capital in balance sheet

• Transferred and subtracted to liabilities in balance sheet