Which of the following statements is correct? Multiple choice question. Businesses attach financial accounting income statements to tax returns and report the profit or loss reported directly on Form 1040. A business calculates net income or loss for tax purposes. Details do NOT have to be reported on the tax return, but records must be retained by the company to present in the event of an audit. The revenues and expenses from a business are reported on Schedule C and the resulting profit or loss is transferred to Form 1040