Question

The income statement provides information about events over a period of a month, year, or other period of time. True or False?

Answer 1

The income statement provides information about events over a period of time, such as a month, year, or other designated period.

Step-by-step explanation:

True. The income statement provides information about events over a period of time, such as a month, year, or other designated period. It shows the revenue earned and expenses incurred during that time frame.

For example, if a company prepares an income statement for the year ending December 31, it will include all the revenue and expenses incurred during that year, giving a comprehensive view of the company's financial performance.

Some common components of an income statement include sales revenue, cost of goods sold, operating expenses, and net income (or loss).