Final answer:
The income statement does not report cash received from the sale of stock because it is not considered revenue.
Step-by-step explanation:
The statement that the income statement does not report cash received from the sale of stock because it is not considered revenue is True.
Revenue on the income statement refers to the money earned from the core operations of a business, such as sales of goods or services. Cash received from the sale of stock is not considered revenue because it does not arise from the business's primary operations. Instead, it is categorized as a financing activity on the cash flow statement.
For example, if a company issues new shares of stock and receives cash in return, this transaction would be recorded as an increase in cash on the cash flow statement without affecting the revenue reported on the income statement.