A Statement of Earnings Reports Which of the Following

question 68

Multiple Choice

A Statement of Earnings reports which of the following?

• A) revenues, expenses, assets, and liabilities during an accounting period.
• B) profit of a business at a point in time.
• C) profit of a business for a period of time.
• D) resources, liabilities, and shareholders' equity of a business at a point in time.

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Definitions:

Net Income

The amount of money a business keeps as profit after all expenditures, taxes, and costs are deducted from its aggregate revenue.

Preferred Dividends

Dividends that are allocated and paid to preferred shareholders before any dividends can be issued to common shareholders.

Operating Expenses

Costs that a business incurs through its normal business operations, excluding cost of goods sold.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.