Which Statement Is True Concerning an Income Statement

question 61

Multiple Choice

Which statement is true concerning an income statement?

• A)The income statement shows how much profit the company has earned since it began operations.
• B)Net income on the income statement should be equal to the amount of cash on the balance sheet.
• C)The income statement summarizes the results of operations for a period of time.
• D)The income statement indicates the liquidity of the company on an annual basis.

---

Definitions:

Raw Material

Basic materials that are processed or transformed into components or products in manufacturing and production processes.

Manufacturing Plants

Facilities where goods are produced in large quantities through combining and processing raw materials using various machines and labor.

Supply

The total amount of a product or service available for purchase or consumption by consumers in a market.

Optimal Solution

The best possible outcome or solution among all feasible alternatives, often found through mathematical methods or modeling.