Which of the following statements about the income statement is correct?
A)Expenses are listed before revenues on the income statement.
B)Revenues are listed before expenses on the income statement.
C)The income statement is prepared after the balance sheet.
D)Dividends are listed on the income statement.

Question

Quizplus · Accepted Answer

The first financial statement prepared is the income statement.Revenues are listed before expenses on the income statement.The amount of net income (or loss)from that statement is then transferred to the statement of retained earnings (which includes Dividends).The ending amount of Retained Earnings from that statement is then transferred to the balance sheet.As a result,the income statement is prepared before (rather than after)the balance sheet.

Which of the Following Statements About the Income Statement Is