The "bottom line" of an income statement shows the firm's:
A)Retained earnings.
B)Gross profit.
C)Net income or net loss.
D)Owners' equity.

Question

Quizplus · Accepted Answer

The "bottom line" of an income statement is also known as the net income or net loss. This represents the profit or loss generated by the firm during the period being reported on. It takes into account all revenue and expenses, including taxes, interest, and other non-operational items. Retained earnings, gross profit, and owners' equity are all important financial figures, but they are not represented by the "bottom line" of the income statement.

The "Bottom Line" of an Income Statement Shows the Firm's