Which of the Following Statements About an Income Statement Is

question 23

Multiple Choice

Which of the following statements about an income statement is true?

• A) An income statement provides information on an organisation's profitability at a certain point in time.
• B) An income statement deducts liabilities from assets to determine shareholders' equity.
• C) The expenses relate to cash payments.
• D) For revenue to be included,it is not necessary for cash to have been received.

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Definitions:

NCI Adjustment

Adjustments made to the non-controlling interest in a subsidiary to reflect their proportionate share of the profits or losses.

Consolidation Worksheet

A tool used in preparing consolidated financial statements, recording the assets, liabilities, and operating results of a parent company and its subsidiaries.

Dividend Payable

A liability recorded on the balance sheet representing a company's obligation to pay its shareholders declared dividends.

Dividend Revenue

Income received from owning shares in a company, typically distributed from the company's profits.