Net income is the final figure after all expenses have been deducted from revenues on a(n):
A) income statement.
B) statement of owner's equity.
C) balance sheet.
D) statement of cash flows.

Question

Quizplus · Accepted Answer

Net income is reported on the income statement as the final figure after subtracting all expenses from revenues. The statement of owner's equity shows the beginning balance of equity, any additional investments, net income or loss, and any withdrawals. The balance sheet reports assets, liabilities, and equity at a specific point in time. The statement of cash flows reports the inflows and outflows of cash during a period of time.

Net Income Is the Final Figure After All Expenses Have