Which financial statement is characterized as revenues - cost of goods sold - expenses = net income?
A) balance sheet
B) statement of cash flows
C) statement of financial position
D) income statement

Question

Quizplus · Accepted Answer

This formula is the basic formula for calculating net income, which is reported on the income statement. The balance sheet reports assets, liabilities, and equity; the statement of cash flows reports on the sources and uses of cash during a period; and the statement of financial position is not a commonly used financial statement.

Which Financial Statement Is Characterized as Revenues - Cost of Goods