Assume accrual basis accounting is used.Which of the following statements about income statement accounts is correct?
A)Costs incurred to help generate revenue are only reported as expenses on the income statement if they are paid in cash in the same period as the revenue received.
B)Revenue accounts are shown after the amount of expense accounts on the income statement.
C)Revenue accounts include Cash,Accounts Receivable,and Deferred Revenue.
D)There is no Net Income account.

Question

Quizplus · Accepted Answer

Net income,the excess of revenues over expenses,is a total on the income statement;it is not an account.

Assume Accrual Basis Accounting Is Used