The income statement will include
A) revenues less expenses (ordered largest to smallest amount) with miscellaneous expense listed last
B) revenues less expenses (ordered smallest to largest amounts) with miscellaneous expense listed last
C) revenues less expenses (ordered in alphabetical order)
D) revenues less expenses (order is not important)

Question

Quizplus · Accepted Answer

The income statement typically presents revenues and expenses in a descending order of magnitude, with the largest revenue items listed first followed by the largest expense items. This approach enables users to easily identify the primary drivers of company performance and assess the efficiency of cost management. Miscellaneous expenses are usually listed towards the end of the statement after all other categories have been accounted for.

The Income Statement Will Include