Mastering Income Statements and Profit/Loss Accounts

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Which financial statement shows a company's revenues and expenses during a particular period?

Balance sheet

Statement of operations

Income statement (correct)

Cash flow statement

What is the purpose of an income statement?

To show a company's cash inflows and outflows

To show a company's assets and liabilities

To show a company's revenues and expenses (correct)

To show a company's net worth

Which term is used to describe the result after all revenues and expenses have been accounted for?

Earnings

Gross profit

Operating income

Net income (correct)

Which financial statement represents a single moment in time?

Balance sheet Signup and view all the answers

Do charitable organizations produce income statements?

No, they don't Signup and view all the answers

Which term is used to describe the financial statement that shows a company's revenues and expenses during a particular period?

Income statement Signup and view all the answers

What is the purpose of an income statement?

To show managers and investors whether the company made money or lost money during the period being reported Signup and view all the answers

Which financial statement represents a period of time?

Income statement Signup and view all the answers

What does the net income or net profit represent on an income statement?

The result after all revenues and expenses have been accounted for Signup and view all the answers

Which term is used to describe the financial statement that represents a single moment in time?

Balance sheet Signup and view all the answers

Mastering Income Statements and Profit/Loss Accounts

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Questions and Answers

Which financial statement shows a company's revenues and expenses during a particular period?

What is the purpose of an income statement?

Which term is used to describe the result after all revenues and expenses have been accounted for?

Which financial statement represents a single moment in time?

Do charitable organizations produce income statements?

Which term is used to describe the financial statement that shows a company's revenues and expenses during a particular period?

What is the purpose of an income statement?

Which financial statement represents a period of time?

What does the net income or net profit represent on an income statement?

Which term is used to describe the financial statement that represents a single moment in time?

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