Question

True or false:The income statement presents cash revenues, cash expenses, net income, and earnings per share for an accounting period.

Answer 1

False, the income statement includes all revenues and expenses, not just cash-based ones, along with net income and earnings per share.

Step-by-step explanation:

The statement is false: the income statement does not present cash revenues and cash expenses, it presents all revenues and expenses recognized during an accounting period, regardless of whether cash has been received or paid.

The income statement does show net income and earnings per share. Cash revenues and expenses are reported in the cash flow statement, not the income statement.