The Income Statement Presents a Summary of an Entity's Revenues

question 98

Multiple Choice

The income statement presents a summary of an entity's revenues and expenses for a period of time. Which of the following statements is true of an income statement?

• A)There is net income when total revenues are lesser than total expenses.
• B)There is a net loss when total expenses are lesser than total revenue.
• C)There is a net loss when total expenses are greater than total liabilities.
• D)There is net income when total revenues are greater than total expenses.

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Definitions:

Femur

The femur is the longest and strongest bone in the human body, located in the thigh.

Clavicle

A bone located in the upper part of the chest (thoracic area) that serves as a strut between the shoulder blade and the sternum or breastbone; commonly known as the collarbone.

Humerus

The long bone in the upper arm that runs from the shoulder to the elbow.

Radius

A bone in the forearm that is located on the lateral side (thumb side) of the forearm, extending from the elbow to the wrist.