The Income Statement Is a Statement Of

question 24

Multiple Choice

The income statement is a statement of:

• A)profit and loss, receipts and sales, at some instant in time.
• B)assets, liabilities, and net worth, at some instant in time.
• C)sales receipts minus proper cost charges against sales, thereby showing earnings over a period of time.
• D)changes in the value of assets, liabilities, and capital between two periods of time.
• E)wages and salaries paid to employees.

---

Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for better performance evaluation.

Food and Supplies

The consumable items and materials necessary for the operation of businesses involved in food service, hospitality, or healthcare, among others.

Spending Variance

The difference between the actual cost incurred for something and the expected cost according to a budget.

Tenant-Days

A metric used in real estate to quantify the number of days a property is rented out.