Question

The two main components of an income statement are?

a. Actuals and revenue
b. Equity and actuals
c. Revenue and expenses
d. Expenses and equity

Answer 1

The two main components of an income statement are revenue and expenses, reflecting a company's financial performance in terms of income earned and costs incurred.

Step-by-step explanation:

The two main components of an income statement are revenue and expenses. The correct answer to the question is c. Revenue and expenses. An income statement, which is one of the primary financial statements, shows a company's financial performance over a specific accounting period. This statement outlines the money the company earns (revenues) and the costs associated with generating that income (expenses). The difference between these two components basically tells us if the company made a profit or incurred a loss.