Question

True or False


1. The format of the income statement or the profit and loss statement will vary according to the complexity of the business activities.

2. A gain is reported on the income statement as the net of two amounts: the proceeds received from the sale of a long-term asset minus the amount listed for that item on the company's books (book value).​

Answer 1

Answer:

1. true

2.false

Step-by-step explanation:

The income statement is used to calculate the net income of a business. The P&L formula is Revenues – Expenses = Net Income. This is a simple equation that shows the profitability of a company. If revenue is higher than expenses, the company is profitable.

Answer 2

Answer:

first true

and second false