Which of the Following Statements Regarding the Income Statement Is

question 56

Multiple Choice

Which of the following statements regarding the income statement is INCORRECT?

• A)The income statement shows the earnings and expenses at a given point in time.
• B)The income statement shows the flow of earnings and expenses generated by the firm between two dates.
• C)The last or "bottom" line of the income statement shows the firm's net income.
• D)The first line of an income statement lists the revenues from the sales of products or services.

---

Definitions:

Characteristic

A feature or quality that defines and distinguishes a person, object, or phenomenon from others.

Management

The process of planning, organizing, directing, and controlling resources to achieve organizational objectives efficiently and effectively.

Exception

A deviation from the rule, standard, or expected outcome.

Contingency Theory

A theory that suggests the effectiveness of a leadership style is contingent upon the context and situation at hand, and no one style is best in all circumstances.