MCQ Practice Single Best Answer Topic: Elements of Accounting

Q Which would you find on an Income Statement?

Question ID

#24246

Subchapter

Elements of Accounting

Action

Choose one option below

Choose Your Answer

Click an option to check whether your answer is correct.

Correct Answer: A

The correct answer is:

A. Expense ✅

👉 Explanation:

The Income Statement (Profit & Loss Account) shows a company’s revenues and expenses over a period to determine profit or loss.
Expenses (like salaries, rent, utilities, cost of goods sold) are recorded here.
Fixed Assets (like machinery, buildings) and Liabilities (like loans, payables) appear on the Balance Sheet, not the Income Statement.

💡 Remember:
Income Statement = Revenues – Expenses → Net Profit/Loss