Which of the Following Is True of Income Statement Accounts

question 28

Multiple Choice

Which of the following is true of income statement accounts?

• A)Costs incurred to help generate revenue are only reported as expenses on the income statement if they are paid in cash in the same period as the revenue received.
• B)Revenue accounts are shown after the amount of expense accounts on the income statement.
• C)Revenue accounts include accounts receivable,unearned revenue and cash accounts.
• D)There is no net income account.

---

Definitions:

Salaries Payable

A liability account that records the amounts owed to employees for work performed but not yet paid.

Social Security Tax

A mandatory contribution paid by employees and employers to fund the social security program, providing benefits for retirement, disability, and survivors.

Payroll of Scotland Company

The total amount of wages and salaries paid by Scotland Company to its employees.

Total Payroll Tax

The combined amount of all governmental taxes that an employer is required to withhold and/or pay on behalf of their employees, including federal, state, and local taxes.