Which of the Following Statements About the Income Statement and Income

question 80

Multiple Choice

Which of the following statements about the income statement and income statement accounts is correct?

• A)The income statement reports the financial position of a company at a point in time.
• B)Income statement accounts are permanent accounts,while balance sheet accounts are temporary accounts.
• C)Income statement accounts are temporary accounts,while balance sheet accounts are permanent accounts.
• D)The income statement reports the cash received and paid during the period.

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Definitions:

Days Sales Outstanding (DSO)

A measure of the number of days that it takes to collect on accounts receivable.

Accounts Receivable

Money owed to the company for goods or services provided and billed to a customer.

Accounts Payable

Money owed by a business to its suppliers.

Cash Inflow

The movement of money into a business or project, contributing to its financial resources.