Question

An income statement reports: O how equity changed over a period of time O asset and liability balances O how cash was received and spent during a period O the revenues less the expenses incurred by a business

Answer 1

Answer :- An Income statement reports the revenues less the expenses incurred by a business.

Analysis

• An Equity Statement reports how equity changed over a period of time.
• Balance Sheet reports asset and liability balances.
• Cash flow Statement reports how cash was received and spent during a period.

Therefore, An Income statements reports the revenues less the expenses incurred by a business. An Income Statement Reports the total income/ Revenue earned during the period less the total expenses incurred by the business. If Total revenue is more than total expenses , then the net result is Net Income. If the total expenses is more than the total Income , then the net result is Net Loss.

Therefore,  An Income statement reports the revenues less the expenses incurred by a business.