Income Summary Appears on Which Financial Statement

question 28

Multiple Choice

Income Summary appears on which financial statement:

• A)Income statement.
• B)Balance sheet.
• C)Retained Earnings statement.
• D)Income summary does not appear on any financial statement.

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Definitions:

Accounts Payable

Liabilities owed by a business to creditors for purchases of goods and services on credit, to be paid in the near term.

Work in Process Inventory

inventory that is in the production process but not yet completed.

Factory Wages Payable

Liabilities for wages owed to manufacturing employees that have not yet been paid.

Factory Payroll

The total compensation paid to employees working within a manufacturing setting, including wages, salaries, and benefits.