Question

17.Which of the following equations expresses the definition of “income”?

Select one:

a. Income = Gains – Losses

b. Income = (Revenues + Gains) – (Expenses + Losses)

c. Income = Revenues + Gains

d. Income = Revenues – Expenses

16.Information in the income statement helps users to

Select one:

a. All of these.

b. help assess the risk or uncertainty of achieving future cash flows.

c. provide a basis for predicting future performance.

d. evaluate the past performance of the enterprise.

Answer 1

Ques 17 :
Correct Answer : Option C
Income = Revenues + Gain
Ques 16 :
Correct Answer : Option A - All of these
Reason :
	1. Information on the various components of Income   - Revenues,expenses,gain and lossses .
	2. Its income statement information help users evaluate past performance.
	3. The income statement help users of finanacial statements predict future cash flows in a number of ways.