Question

The income statement measures the flow of funds into (i.e. revenue) and out of (i.e. expenses) the firm over a certain time period. It is always based on accounting data. True False

Answer 1

The answer is True.

Step-by-step explanation:

Income statement ultimately shows the profit or the loss of the Organizational activities.

The data used in the preparation of the income statement are based on the accounting information are are always based on accounting information.