Which Statement(s) Summarizes the Revenues, Gains, Expenses, and Losses of an Entity

question 52

Multiple Choice

Which statement(s) summarizes the revenues, gains, expenses, and losses of an entity?

• A) Balance sheet
• B) Statement of cash flows and income statement
• C) Statement of retained earnings and statement of operations
• D) Income statement

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Definitions:

LIFO Liquidations

Occurs when a company using the Last-In, First-Out inventory method sells off older inventory items, potentially resulting in a lower cost of goods sold and higher profit.

Accounting Treatment

Refers to the method of applying accounting principles and rules to transactions and financial events in a company’s financial statements.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

U.S. Tax Rules

The laws and regulations governing the taxation of individuals and corporations in the United States.