1. The equation best describing the income statement is: A. Revenues - Expenses = Net Income. B. Assets = Revenues - Expenses. C. Assets = Liabilities + Stockholders' Equity. I D. Revenues + Expenses = Net Income. 2. Which of the following items would not appear in an income statement? A. Salaries expense. B. Advertising expense. C. Service revenue. D. Cash. 2. Which of the following items would not appear in an income statement? A. Salaries expense. B. Advertising expense. C. Service revenue. D. Cash