An Income Statement May Be Represented as Follows

question 69

Multiple Choice

An income statement may be represented as follows:

• A) Sales - Liabilities = Profits.
• B) Revenues - Liabilities = Net Income.
• C) Sales - Expenses = Retained Earnings.
• D) Sales - Expenses = Profits.

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Definitions:

Bacteria

Single-celled microorganisms that can be found in a wide range of environments; some cause disease while others are beneficial.

Siliceous Shells

Shells or skeletons of some aquatic organisms, made of silica and found in diatoms and certain sponges.

Diatoms

A major group of algae, specifically microalgae, known for their unique silica-based cell walls, which exhibit intricate and beautiful designs.

Unicellular

Composed of a single cell, characteristic of organisms that perform all life processes within a single cellular structure.