The income statement:
A)measures performance for one specific day.
B)ignores any income other than operating revenues.
C)excludes deferred tax expense.
D)treats dividends paid as a cash expense.
E)includes noncash expenses.

Question

Quizplus · Accepted Answer

The income statement includes noncash expenses, such as depreciation expense. The other choices are incorrect because the income statement measures performance over a period of time, not just one specific day; it can include income from sources other than operating revenues; it includes deferred tax expense; and dividends paid are not treated as a cash expense on the income statement.

The Income Statement