In relation to the balance sheet,an income statement shows
A)net worth,not the period's savings or dissavings.
B)the period's savings or dissavings,not net worth.
C)activities at a point in time,not over a period of time.
D)financial position,not financial performance.

Question

Quizplus · Accepted Answer

The income statement shows the period's savings or dissavings, also known as the financial performance, by comparing revenues and expenses. On the other hand, the balance sheet shows the financial position of a company at a point in time, including assets, liabilities, and equity, which can be used to calculate net worth. Therefore, option B is the correct choice.

In Relation to the Balance Sheet,an Income Statement Shows