Expenses are shown in which of the following statements?
A)Income statement.
B)Statement of cash flows.
C)Balance sheet.
D)Statement of stockholders' equity.

Question

Quizplus · Accepted Answer

The income statement, also known as the profit and loss statement, shows the revenues and expenses incurred by a company during a specific period of time. Expenses are subtracted from revenues to arrive at the net income (or loss) for the period. Therefore, expenses are shown in the income statement. The statement of cash flows shows the cash inflows and outflows during a period, including operating, investing, and financing activities. The balance sheet shows a company's assets, liabilities, and equity at a specific point in time. The statement of stockholders' equity shows the changes in a company's equity accounts over a specific period. Neither of these statements directly show expenses.

Expenses Are Shown in Which of the Following Statements