The Basic Formula Used for the Income Statement Is

question 103

Multiple Choice

The basic formula used for the income statement is

• A) profit plus revenues equals expenses.
• B) revenue minus expenses equals profit.
• C) expenses plus profit equals revenue.
• D) expenses plus revenues equals profit.
• E) revenue minus profits equals expenses.

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Definitions:

Amount Owed

The total sum of money that is due to be paid to another party or lender.

Appraised

The process of professionally evaluating the value of a particular piece of property, such as real estate or a collectible.

Offered for Sale

Products or services made available to customers for purchase.

Buyer Pays

A term indicating that the purchaser is responsible for the cost of shipping and insurance during transportation of goods.