The Biggest Difference Between the Income Statement and the Balance

question 123

Multiple Choice

The biggest difference between the income statement and the balance sheet is:

• A) the income statement shows incoming deposits, while the balance sheet shows account balances from the bank.
• B) the income statement is submitted to the government, while the balance sheet is shown to investors.
• C) the income statement is always more accurate than the balance sheet.
• D) the balance sheet represents stocks of cash at a point in time, while the income statement reflects flows of cash over a time period.

---

Definitions:

Inseparability

A characteristic of services indicating that they are often produced and consumed simultaneously and cannot be separated from their provider.

Nonprofit Organizations

Entities that operate for purposes other than making a profit, focusing on social, charitable, cultural, or educational objectives.

American Red Cross

A humanitarian organization that provides emergency assistance, disaster relief, and education inside the United States.

Marketing Practices

Encompasses the strategies and tactics businesses use to promote, sell, and distribute their products or services.