What Is an Income Statement? - Purpose, Components & Format


Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Explain the purpose of an income statement.

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. Which of the following is the equation used for the basic income statement?

2. How can money be brought into a company?

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

This quiz/worksheet combination will assess your knowledge of the purpose of income statements. To pass the quiz, you will need to be familiar with related terminology, the function of income statements, and other information discussed in the lesson.

Quiz & Worksheet Goals

Assessments will test you on the following:

  • The basic income statement equation
  • Income statements' significance to business owners
  • Components of an income statement

Skills Practiced

Students will practice the following skills:

  • Information Recall- access the knowledge you've gained regarding the meaning of various terms found in income statements
  • Interpreting Information- verify that you can read information regarding the purpose of an income statement and interpret it accurately
  • Reading Comprehension- ensure that you draw the most important information from the What is an Income Statement? - Purpose, Components & Format lesson

Additional Learning

Review the lesson, What Is an Income Statement? - Purpose, Components & Format, to learn more about the purpose of income statements. Objectives covered include:

  • Define income statement
  • Understand the role of an income statement in a financial statement
  • Know when income statements are generated