The Financial Statement That Presents a Summary of the Revenues

question 93

Multiple Choice

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or a year, is called a(n)

• A) Statement of Cash Flows
• B) Statement of Retained Earnings
• C) Income Statement
• D) Balance Sheet

---

Definitions:

Purchase Allowances

Reductions in the price paid by a buyer to a seller, due to minor defects or quality issues with the goods provided.

Price Reduction

A decrease in the selling price of products or services, often to drive sales or clear inventory.

Prompt Payment

A financial discipline that involves settling debts quickly, often rewarded by suppliers with discounts.

Purchase Returns

Transactions where buyers return previously purchased merchandise to the seller, often because of defects or errors in the shipment.