The Income Statement Reports

question 6

Multiple Choice

The income statement reports:

• A)the assets,liabilities,and stockholders' equity of a company.
• B)cumulative earnings that have not been distributed to stockholders.
• C)the amount of profit distributed to owners during the period.
• D)the amount of revenues earned and expenses incurred during the period.

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Definitions:

Accountability

A tenet of ethics that refers to determining who is responsible for actions that were taken.

Answerability

Refers to the obligation of individuals or entities to provide an explanation or justification for their actions to stakeholders or governing bodies.

Liability

The state of being legally responsible for something, especially in terms of financial or other penalties.

Disseminating

The act of spreading information, knowledge, or ideas widely.