Question

The income statement presents

A. an explanation of the changes in the beginning and ending balances of stockholders' equity.

B. a comparison of the benefits and the sacrifices a company experiences from its operations.

C. information in three categories including operating, investing, and financial activities.

D. a list of a company's assets and the sources of those assets

Answer 1

Answer:

B. a comparison of the benefits and the sacrifices a company experiences from its operations.

Explanation:

The total revenues and total expenditures are reported in the income statement.  

If the total income exceeds expenditure then the company earns net income And if the total income is below the total expenditure then the company has a net loss This net income or net loss would be represented in the retained earnings account statement.

Therefore, it shows a comparison between the benefits and the sacrifice made.