Which two types of information does an income statement provide? (Choose 2.) A. An analysis of the shareholder equity B. A classification of revenues and expenses C. An indication of profitability D. A classification of assets and liabilities

Question

Which two types of information does an income statement provide? (Choose 2.) A. An analysis of the shareholder equity B. A classification of revenues and expenses C. An indication of profitability D. A classification of assets and liabilities

Answer 1

The correct answers are B and C.An income statement provides information on the revenues and expenses of a business, which allows for the calculation of net income or net loss. This information is classified into different categories such as operating and non-operating revenues and expenses.Additionally, an income statement indicates the profitability of a business by showing the net income or net loss for a specific period. This information is crucial for stakeholders to assess the financial performance of the business.Option A is incorrect because an analysis of shareholder equity is provided in the balance sheet, not the income statement.Option D is also incorrect because a classification of assets and liabilities is provided in the balance sheet, not the income statement.

Problemas

Which two types of information does an income statement provide? (Choose 2.) A. An analysis of the shareholder equity B. A classification of revenues and expenses C. An indication of profitability D. A classification of assets and liabilities

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