The income statement presents a summary of an entity's revenues and expenses for a period of time.Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

A is true because profit is earned when revenues exceed expenses. B is true because a loss is incurred when expenses exceed revenues. C is not necessarily true because withdrawals are not typically included in the income statement, which only shows revenues and expenses.

The Income Statement Presents a Summary of an Entity's Revenues