Which of the following best describes the information reported in the income statement?
A) The portion of profits paid in cash to stockholders.
B) The current resources available to pay current obligations.
C) The amount recognized from providing goods and services to customers compared to the cost of doing so.
D) The extent to which cash inflows exceed cash outflows.
Answer: C
Which of the following is true about an income statement?
A) It reports activity for a period of time.
B) It does not include dividends paid.
C) It reports revenues and expenses.
D) All of the other answers are true.
Answer: D
