Question

The Income Statement always balances.
A) True
B) False

Answer 1

The Income Statement does not always balance as it shows a company's revenues, expenses, and net income or loss for a specific period of time.

Step-by-step explanation:

False. The Income Statement does not always balance. The Income Statement, also known as the Profit and Loss Statement, is a financial statement that shows a company's revenues, expenses, and net income or loss for a specific period of time. It is designed to show the profitability of a business. For the Income Statement to balance, the total revenues must be equal to the total expenses, resulting in a net income of zero. However, in most cases, the Income Statement will show a positive or negative net income, meaning it does not balance.