The income statement presents the income and expenses of an entity for a specific period of time, typically a month, quarter or year. It shows revenues earned by the entity, expenses incurred and the resulting net income or loss.

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The Income Statement

Question 20

Multiple Choice

The income statement

A) presents the income and expenses of an entity for a specific period of time.
B) reports the changes in assets,liabilities and equity over a period of time.
C) reports the assets,liabilities and equity at a specific point in time.
D) summarises the change in retained earnings over a specific period of time.

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