An Income Statement

question 71

Multiple Choice

An income statement

• A)summarizes the changes in retained earnings for a specific period of time.
• B)reports the changes in assets, liabilities, and shareholders' equity over a period of time.
• C)reports the assets, liabilities, and shareholders' equity at a specific date.
• D)reports the revenues and expenses for a specific period of time.

---

Definitions:

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.

Competitive Industry

An industry in which numerous producers supply a homogeneous product or service, leading to competition over price and quality.

Marginal Cost

The extra expenditure needed to manufacture one more unit of a good or service.

Average Cost

The total cost of production divided by the quantity of output produced; it's a measure of how much it costs, on average, to produce one unit of output.