The Amount of Net Income Shown on the Income Statement

question 46

Multiple Choice

The amount of net income shown on the income statement also appears on the:

• A) balance sheet
• B) statement of assets
• C) statement of financial position
• D) statement of retained earnings

---

Definitions:

Donee Beneficiary

A donee beneficiary is a third party who benefits from a contract made between two other parties, where the intent is to gift the benefits of the contract to this third party.

Incidental Beneficiary

A third party who benefits from a contract incidentally but has no legal right to enforce the contract or claim damages.

Creditor Beneficiary

A third party who benefits from a contract in which the promisor agrees to pay the promisee’s debt.

Public Policy

General principles or ideologies that guide the creation of laws and the operation of government, reflecting the societal values and norms.