Net Income Appears on Which Financial Statement(s)

question 24

Multiple Choice

Net Income appears on which financial statement(s) ?

• A)Balance Sheet only
• B)Income Statement only
• C)Both the Balance Sheet and the Income Statement
• D)The Income Statement, Statement of Cash Flows and the Statement of Retained Earnings

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Definitions:

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.

Contribution

The amount of money or resources that an individual or entity provides towards a particular project, investment, or cause.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed to variable costs.

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.