The amount of profit or loss will be reflected in the
A) balance sheet.
B) cost of goods sold.
C) quick ratio.
D) income statement.
E) statement of cash flow.

Question

Quizplus · Accepted Answer

The income statement is the financial statement that shows revenue, expenses, and net income (or loss) for a specific period of time. Therefore, the amount of profit or loss will be reflected in the income statement. The balance sheet shows assets, liabilities, and equity at a specific point in time, while the cost of goods sold and quick ratio are specific calculations used to analyze financial statements. The statement of cash flow shows the inflows and outflows of cash during a period of time.

The Amount of Profit or Loss Will Be Reflected in the