An income statement
A) summarizes the changes in owner's equity for a specific period of time.
B) reports the changes in assets liabilities and owner's equity over a period of time.
C) reports the assets liabilities and owner's equity at a specific date.
D) presents the revenues and expenses for a specific period of time.

Question

Quizplus · Accepted Answer

An income statement presents the revenues and expenses for a specific period of time, typically a month or a year. Option A refers to a statement of owner's equity, option B refers to a statement of financial position (aka balance sheet), and option C refers to a snapshot of financial position at a specific date.

An Income Statement