Question

The income statement lists all the

account balances for the period.
A. revenue and expense
B. liability and capital
C. temporary and permanent
D. asset and withdrawal

Answer 1

A. revenue and expense

Step-by-step explanation:

An income statement is among the three important financial statements prepared by a business entity. It summarizes all incomes (revenues) and expenses (costs) of a company in a particular financial year. Total costs are subtracted from the total revenue to get the net income.

An income statement is prepared to show the profits of a business in a particular financial year. A positive net income indicates profits, while a negative net income denotes losses.