On which financial statement would you find total sales revenue reported?

• A. Statement of Cash Flows
• B. Statement of Retained Earnings
• C. Balance Sheet
• D. Income Statement

Answer: (D)

Verified step by step guidance

1. Understand the purpose of each financial statement: The Income Statement reports a company's revenues and expenses over a specific period, the Balance Sheet shows the company's financial position at a specific point in time, the Statement of Cash Flows details cash inflows and outflows, and the Statement of Retained Earnings explains changes in retained earnings.
2. Recognize that total sales revenue is a measure of the company's earnings from its core operations during a specific period, which aligns with the purpose of the Income Statement.
3. Recall that the Income Statement begins with total sales revenue and then deducts expenses to calculate net income, making it the appropriate financial statement for reporting total sales revenue.
4. Eliminate the other options: The Statement of Cash Flows focuses on cash transactions, the Balance Sheet focuses on assets, liabilities, and equity, and the Statement of Retained Earnings focuses on changes in retained earnings, none of which directly report total sales revenue.
5. Conclude that total sales revenue is reported on the Income Statement, as it provides a detailed breakdown of revenues and expenses for the period.