Question
The income statement shows the financial position of a business at a specific point in time. True False
Solution
4.7
(150 Votes)
Finn
Veteran ยท Tutor for 9 years
Answer
False.The income statement (also known as the profit and loss statement) reports the financial *performance* of a business *over a period of time*. It shows revenues, expenses, and the resulting profit or loss.The balance sheet is what shows the financial *position* of a business *at a specific point in time*. It lists assets, liabilities, and equity.