Question

1. The primary purpose of the income statement is to provide key stakeholders information about

Assets, Liabilities, and Equity

Cash Sources and Cash Uses

Revenue, Expenses, and Profit or Loss

All of these

2. An income statement is a report that shows how much revenue a company earned at a point in time or a specific date

True

False

3.While it means the same thing, the terms sales, revenue, net sales, or net revenue is used for the top line of income statements depending on the organization

True

False

4.Sales or Revenue is intended to reflect

All Cash generated by an organiztion

The total amount of money earned from sales of products or services the entity produces for its customers

The total amount of money it gains from selling off a building or equipment it no longer needs

All of these

Answer 1

1. The primary purpose of the income statement is to provide key stakeholders information about
Correct Answer = Option #3:Revenue, Expenses, and Profit or Loss

Revenues – Expense = profits or loss

2. An income statement is a report that shows how much revenue a company earned at a point in time or a specific date

False
Income Statement is prepared for a ‘period of time’ not ‘at a point of time’

3.While it means the same thing, the terms sales, revenue, net sales, or net revenue is used for the top line of income statements depending on the organization

True

4.Sales or Revenue is intended to reflect

Correct Answer = Option #2: The total amount of money earned from sales of products or services the entity produces for its customers