Mini Quiz 1

What does an income statement tell you about the company?

a. The amount of assets the company owns.
b. The company's profit or loss.
c. How much money has been invested in the company by its owners.
d. The amount of money the company owes its creditors.

D is an incorrect answer. The money a company owes to its creditors is a Liability to the firm. You can find liabilities on the Balance Sheet. Please, try again.