Which of the following best describes the information reported in the income statement?
A)The portion of profits paid in cash to stockholders.
B)The current resources available to pay current obligations.
C)The amount earned from customers compared to the cost of doing so.

Question

Quizplus · Accepted Answer

The income statement reports the amount of revenue earned from customers and deducts the expenses incurred in earning that revenue, resulting in the net income or loss for the period. It does not report cash payments to stockholders (which would be reported in the statement of cash flows) or current resources available to pay current obligations (which would be reported in the balance sheet).

Which of the Following Best Describes the Information Reported in the Income