Chapter 8 Income Statement

Question 1

The final value shown on a proprietor’s income statement is:

(1) known as net income.
(2) equal to taxable income plus capital cost allowance less depreciation expense.
(3) the difference between revenue and expenses for one year of operation.
(4) all of the above.

Answer 1

4

Question 2

which of the following statements regarding income statements is FALSE?

(1) It is also known as a profit and loss statement.
(2) It is a listing of the revenue and expenses of a business enterprise.
(3) It may include depreciation, revenue, and cost of good sold.
(4) It is always determined on an annual basis.

Answer 2

4