Which of the following statements about the income statement of a company that was formed 10 years ago is correct?
A)Reports a Net Loss for the year if expenses are more than revenues.
B)Reports the financial effects of activities that have occurred since the company's inception.
C)Reports the amount of the increase in stockholders' equity this year as a result of the company's operations.
D)Reports Net Income,which is an account in the ledger.

Question

Quizplus · Accepted Answer

The income statement reports the results of operations for a period of time,not since the inception of the company.If revenues are less than expenses then the net income is a negative amount and is called net loss.Stockholders' equity increases by the amount of net income or decreases by the amount of net loss for a period.

Which of the Following Statements About the Income Statement of a Company