Which of the following statements about the income statement and income statement accounts is correct?
A. Income statement accounts are permanent accounts, while balance sheet accounts are temporary accounts.
B. The income statement reports the financial position of a company at a point in time.
C. Income statement accounts are temporary accounts, while balance sheet accounts are permanent accounts.
D. The income statement reports the cash received and paid during the period.
Answer: C
You might also like to view...
A provision in a residential lease excusing a landlord from liability for damage caused by water, snow, or ice is void
Indicate whether the statement is true or false
The principles underlying an audit conducted in accordance with generally accepted auditing standards are grouped into four categories. The second category is that of "personal responsibility of the auditor" Generally explain what is intended by this principle.
What will be an ideal response?
Bonds are typically short-term investments
Indicate whether the statement is true or false
Adjusting entries do not always affect both the income statement and the balance sheet.
Answer the following statement true (T) or false (F)