Asked by Jasmine Mendoza on Jul 15, 2024
Verified
The income statement will present
A) revenues less expenses (ordered largest to smallest amounts) with miscellaneous expense listed last
B) revenues less expenses (ordered smallest to largest amounts) with miscellaneous expense listed last
C) revenues less expenses (ordered in alphabetical order)
D) revenues less expenses (order is not important)
Income Statement
A financial statement that shows a company's revenues, expenses, and profits or losses over a specific period.
Revenues
Increases in assets from performing services or delivering products to customers.
Expenses
Money spent or cost incurred in an organization's efforts to generate revenue, representing the cost of doing business.
- Engage in the computation and critique of elements within financial statements, taking the adjusted trial balance as a starting point.
Verified Answer
RP
Raahim PathanJul 20, 2024
Final Answer :
A
Explanation :
The income statement is typically prepared in order of largest to smallest amounts, with miscellaneous expenses listed last. This presentation provides a clear picture of the company's revenues and expenses, with the most significant figures appearing first.
Learning Objectives
- Engage in the computation and critique of elements within financial statements, taking the adjusted trial balance as a starting point.
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