Which of the Following Is Not True About the Income

question 123

Multiple Choice

Which of the following is not true about the Income Statement?

• A) Amounts received from customers for services performed in the current month would be revenues on the income statement.
• B) Costs incurred in the current month but not paid as of the end of the month would be expenses on the income statement for the current month.
• C) Amounts received from customers in payment of their accounts arising from service in the prior period would be revenues in the income statement for the current period.
• D) Amounts received from customer as deposits for services to be rendered next month will not be recorded as

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Definitions:

Evaluate

To calculate the numerical value of an expression or determine the result of an equation.

Function

A function is a relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.

Simplify

To reduce a mathematical expression or equation to its simplest form by performing all operations and simplifying all terms.

Evaluate

To calculate the numerical value of an expression, equation, or function when certain values are known or substituted for variables.