bank and income statements quick check\nwhat is an income statement? (1 point)\no a statement of sales over…

bank and income statements quick check\nwhat is an income statement? (1 point)\no a statement of sales over time compared to cogs at any point of time\no a statement that compares assets to liabilities\no a list of all sources of income\na statement that compares revenues to expenses and presents the net income (or loss) from a\nperiod of time

bank and income statements quick check\nwhat is an income statement? (1 point)\no a statement of sales over time compared to cogs at any point of time\no a statement that compares assets to liabilities\no a list of all sources of income\na statement that compares revenues to expenses and presents the net income (or loss) from a\nperiod of time

Answer

Brief Explanations:

An income statement is a financial statement. It shows revenues, expenses, and net income (or loss) over a specific period. Let's analyze each option:

  • Option 1: COGS (Cost of Goods Sold) is part of expenses, but an income statement is not just about sales vs COGS at any point. It's over a period and includes all revenues and expenses.
  • Option 2: Comparing assets to liabilities is what a balance - sheet does, not an income statement.
  • Option 3: A list of all income sources is too simplistic. An income statement also accounts for expenses.
  • Option 4: This correctly describes an income statement as it compares revenues to expenses over a period and shows net income (or loss).

Answer:

a statement that compares revenues to expenses and presents the net income (or loss) from a period of time