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.

---

Definitions:

Big Cheese

Big Cheese is a colloquial term used to describe someone of importance or high status in a particular area or field.

Social Honour

Recognition or respect gained within a society based on one's actions, characteristics, or achievements.

Wealth And Property

The total value of all the financial and non-financial assets owned by an individual or group, minus the value of all its outstanding liabilities.

Max Weber

A German sociologist, philosopher, and political economist known for his theory of social and economic organization and his ideas on the development of capitalism.