7-1 Prepare an Income Statement

A _________ is a summary level report used to convey the financial position and performance of an organization within a specific time period.

• General Ledger

• Chart of Accounts

• Financial Statement

• Adjusted Trial Balance

The __________ is a financial statement that summarizes the total revenues and expenses of an organization, and the resulting profit or loss over a specific accounting period

• Balance Sheet

• Income Statement

• Adjusted Trial Balance

• Cash Flow Statement

What accounts are included in an income statement?

• Assets, Liabilities, Owners’ Equity

• Revenue & Expenses

• Revenue, Expenses, Owners’ Equity

• 
  Assets & Liabilities

If revenues are greater than or equal to expenses, the income statement reports a _________.

• Profit

• Net Expenses

• Net Income

• Net Loss

If revenues are less than expenses, the income statement reports a _________.

• Profit

• Net Expenses

• Net Income

• Net Loss