An income statement does not include which of the following?

• A. Net income
• B. Revenues
• C. Total assets
• D. Expenses

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the purpose of an income statement. An income statement is a financial report that summarizes a company's revenues, expenses, and net income over a specific period. It is used to assess the company's profitability.
2. Step 2: Review the components of an income statement. The key elements include revenues (money earned from business operations), expenses (costs incurred to generate revenues), and net income (the result of subtracting expenses from revenues).
3. Step 3: Identify what is not included in an income statement. Total assets are part of the balance sheet, not the income statement. The balance sheet provides a snapshot of a company's financial position, including assets, liabilities, and equity, at a specific point in time.
4. Step 4: Compare the options provided in the question. Net income, revenues, and expenses are all components of the income statement, while total assets are not.
5. Step 5: Conclude that the correct answer is 'Total assets,' as it is not part of the income statement but rather the balance sheet.