An income statement of a manufacturer
A) will show the ending balance of work in process.
B) contains only manufacturing costs.
C) will show the ending balance of materials inventory.
D) covers a certain period of time.

Question

Quizplus · Accepted Answer

An income statement covers a certain period of time, typically a month, quarter, or year. A) is incorrect because the ending balance of work in process would appear on a balance sheet, not an income statement. B) is incorrect because an income statement includes all expenses, not just manufacturing costs. C) is incorrect for the same reason as A) - the ending balance of materials inventory would appear on a balance sheet.

An Income Statement of a Manufacturer