The income statement reports the amount of revenues earned and expenses incurred during the period, resulting in the net income or net loss of the company. It does not report assets, liabilities, or stockholders' equity, nor does it specifically report cumulative earnings or profit distributed to owners.

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The Income Statement

Question 99

Multiple Choice

The income statement

A) reports the assets,liabilities,and stockholders' equity of a company.
B) reports cumulative earnings that have not been distributed to stockholders.
C) reports the amount of profit distributed to owners during the period.
D) reports the amount of revenues earned and expenses incurred during the period.

Correct Answer: