The equation best describing the income statement is:
A)Revenues
Expenses = Net Income.
B)Assets = Revenues
Expenses.
C)Assets = Liabilities + Stockholders' Equity.
D)Revenues + Expenses = Net Income.

Question

Quizplus · Accepted Answer

The income statement equation is Revenues - Expenses = Net Income, which shows how much profit a company makes after subtracting expenses from revenues.

The Equation Best Describing the Income Statement Is