Income Statement is prepared at

• Middle of the year

• End of the year

• Every 3 months

• Every 6 months

What is recorded in the Income Statement

• Expense & Income

• Asset & Liability

• All 5

• Drawings

When you debit Income Statement it

• increases profit

• decreases profit

• profit remains unchanged

• None of these

In the Income St Expenses and Liability are

• Debited

• Credited

• Both

Prepaid expenses and income are

• subtracted

• added

• multiplied

• divided

Accrued expense and income is

• added

• subtracted

• multiplied

• divided

Recording of income in Income Statement is

• an opening entry

• a closing entry

• an adjustment entry

• a rectification entry

In the Income Statement a service business earns

• Only Gross Profit

• Gross and Net Profit

• Only Net Profit

• Divisible Profit

In the Income Statement a trader will earn

• Only Gross Profit

• Gross profit & Net profit

• Only Net Profit

• Divisible Profit

Gross Profit=

• Sales - Cost

• Sales - Cost of sales

• Sales - Expense

• Sales - Cost of goods sold