The "bottom line" of an income statement shows the firm's:
A)owners' equity.
B)net income or net loss.
C)retained earnings.
D)gross margin.

Question

Quizplus · Accepted Answer

The bottom line of the income statement reflects the net income or net loss of the firm. This is the amount that is left over after all of the expenses and revenues have been accounted for. It represents the financial performance of the firm and is a key indicator of its profitability. Owners' equity, retained earnings, and gross margin are all important components of the income statement but are not represented by the bottom line.

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