On the income statement, revenues and expenses are classified as either current or long-term to indicate their relative liquidity.

Question

Quizplus · Accepted Answer

On the income statement, revenues and expenses are not classified as current or long-term; this classification is used on the balance sheet for assets and liabilities to indicate their liquidity or solvency. The income statement focuses on showing the company's profitability over a period, detailing revenues and expenses without classifying them by their liquidity.

On the Income Statement, Revenues and Expenses Are Classified as Either