The Income Statement includes only revenue and expenses and equal net income Group of answer choices True False

Question

Business

Payton Sharp

10 May, 07:19

The Income Statement includes only revenue and expenses and equal net income Group of answer choices True False

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Answers (1)

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Jacqueline Mccarty · Answer 1

True

Explanation:

Because the income statement shows only the cost related to the period and sales which is in accordance to the matching concept which says that the expenses and sales recorded must be for the period which it relates. This means if we are making Income statement then we can not include the expenses of previous year in current year income statement.

In simple words, income statement will assesses the profitability of the company and profit is equal to the difference of the total sales and total expenses in the year. The statement is true.