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The Income Statement Shows the Financial Position of a Business at a Specific Point in Time. True False

Question

The income statement shows the financial position of a business at a specific point in time. True False

Solution

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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.