Which of the Following Statements About the Income Statement Is

question 137

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 period would be revenues in the income statement for the current period.
• 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.

---

Definitions:

Pharynx

The muscular tube at the back of the nose and mouth that connects them to the esophagus.

Serous Fluid

A clear, watery fluid that lubricates the surfaces of membranes lining body cavities and organs.

Pleura

Thin layers of tissue that line the lungs and the inside of the chest cavity, providing lubrication necessary for the lungs to move smoothly during breathing.

Thorax

The chest cavity.