Which of the Following Statements About the Income Statement Is

question 220

Multiple Choice

Which of the following statements about the income statement is not correct?

• A)Amounts received from customers for services performed in the current month would be revenues on the income statement.
• B)Costs incurred in the current month but not paid as of the end of the month would be expenses on the income statement for the current month.
• C)Amounts received from customers in payment of their accounts arising from service in the prior month would be revenues in the income statement for the current month.
• D)Amounts received from customer as deposits for services to be rendered next month will not be recorded as revenues on the income statement for the current month.