Net Income Appears on Which of the Following Financial Statements

question 87

Multiple Choice

Net income appears on which of the following financial statements?

• A)Balance Sheet
• B)Balance Sheet and Statement of Changes in Stockholders' Equity
• C)Income Statement
• D)Income Statement and Statement of Changes in Stockholders' Equity

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuer.

Paid-in Capital

Paid-in capital represents the funds raised by a company through the sale of stock to shareholders, above the par value of the shares.

Treasury Stock

Shares that were once issued and fully paid, but have been bought back by the issuing company and are held in the company’s treasury.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and holds in its own treasury.