The Income Statement:
I. reflects the current operating performance of the firm.
II. indicates whether the firm is healthy and growing or not.
III. explains the changes in assets, liabilities and Equity of the firm.
IV. is a snapshot of a firm's operations at a given time.
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A. B. C. D.C
II needs a cash flow statement, in addition. III is not true since the Income statement does not contain all the details which pertain to changes in assets and liabilities. Finally, an income statement shows the performance over a time period and is hence, not a "snapshot" of operations.