Question

The income statement presents an explanation of the changes in the beginning and ending balances of stockholders’ equity.

a. a comparison of the benefits and the sacrifices a company experiences from its operations.
b. information in three categories including operating, investing, and financial activities.
c. a list of a company’s assets and the sources of those assets.

Answer 1

a. a comparison of the benefits and the sacrifices a company experiences from its operations.

Step-by-step explanation:

As we know that the income statement records only revenues earned and the expenses incurred.

If the total revenue exceeds total expenditure then the company earns net income And if the total income is below the total expenditure then the company has a net loss This net income or net loss would be expressed in the retained earnings account statement.

So, the benefits represents the revenues and sacrifice represents the expenditure

The rest options are related to the statement of stockholder equity, cash flow statement and the balance sheet