1) On the income statement, net income (profits) tell you:

A)	The difference between how much a company owns and how much it owes.

B)	The difference between how much cash a company received and how much cash it paid out during a period of time.

C)	The difference between how much a company recorded as revenues and expenses during a given period.

D)	The difference between how much a company owns and how much it spend during a given period.

2)

Income Statement - which of the following is incorrect?

Question 56 options:

A)	A multi-step presentation highlights the differences between short-term and long-term revenues and expenses.

B)	We can discuss the income statement line items in terms of whether they are operating or nonoperating.

C)	A multi-step presentation highlights gross profit, operating expenses, operating income, earnings before taxes and net income.

D)	The income statement reports the difference between revenues and expenses.