An income statement examines the overall profitability of a firm over a particular period of time by showing the revenue, expenses, and net income (or loss) of the business. It does not deal with assets, liabilities, owner's equity, cash flows, or dividends.

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An Income Statement

Question 59

Multiple Choice

An income statement:

A) examines a business's assets, liabilities, and owner's equity at some particular point in time.
B) attempts to identify cash flows into a firm and cash flows from a firm for some future period.
C) examines the reinvested income in a business and which has not been paid out to shareholders as dividends.
D) examines the overall profitability of a firm over a particular period of time.
E) examines cash inflows and cash outflows for a business during a specified period of time.

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