The information presented in an income statement could be described using which of the following equations?
A) Equity = liabilities - assets
B) Equity = assets - liabilities
C) Revenues - expenses = net income
D) Net income = expenses - revenues + taxes
E) Costs of goods sold = beginning inventory + interim purchases - ending inventory

Question

Quizplus · Accepted Answer

The income statement indicates the firm's profitability or income (the bottom line)which is derived by subtracting the firm's expenses from its revenues.

The Information Presented in an Income Statement Could Be Described