Which of the Following Amounts Appears on Both the Income

question 35

Multiple Choice

Which of the following amounts appears on both the income statement and statement of owner's equity?

• A) Ending capital
• B) Total revenues
• C) Net income
• D) Drawings

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Definitions:

Long-Term Investment

An asset or investment held for an extended period, typically exceeding one year, to achieve higher returns.

Indirect Method

A cash flow statement preparation approach that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Operating Activities

Actions and transactions related to the core business operations, such as sales and the production of goods or services.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from the total revenue.