The income statement

Question

Quizplus · Accepted Answer

The income statement determines the aftertax income of a firm. This is the profit earned by the company after all expenses and taxes have been paid. Therefore, option B is correct. Option A is incorrect as the income statement shows a firm's performance over a period of time, not just as of a specific date. Option C is incorrect as deferred taxes are included in the income statement. Option D is incorrect as dividends are not considered an expense on the income statement. Option E is incorrect as the income statement does not determine the value of a firm to its stockholders, rather it provides information on the company's financial performance.

The Income Statement