Which of the Statements Below Is FALSE

question 16

Multiple Choice

Which of the statements below is FALSE?

• A)The income statement summaries and categorizes a company's revenues and expenses for that period.
• B)Typically,income statements are prepared quarterly and annually for distribution outside the company,but usually monthly for internal managers.
• C)The income statement begins with revenue and subtracts various operating expenses until arriving at Earnings Before Interest and Taxes (EBIT).
• D)The balance sheet reports the performance of the firm over the past period.It summarizes and categorizes a company's revenues and expenses for that period.

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Definitions:

Sales Tax

A tax levied by a government on the sale of goods and services, collected by the retailer at the point of sale and passed on to the government.

Merchandise

Goods that are purchased for resale at a profit.

Asset Account

An account that records all financial transactions related to a company's assets, including current and fixed assets.

Credit Customer

A customer who purchases goods or services on credit, paying for them at a later date.