Which of the following, if true, strengthens the case that an income s

QUESTION

Which of the following, if true, strengthens the case that an income statement would show Streeter & Sons where its problems lie?

A) The company does not have enough shareholders.
B) The company’s expenses are too high.
C) The company’s owners’ equity is too low.
D) The company needs to hire more service specialists.
E) The company has few intangible assets.

ANSWER

Answer: B
Explanation: B) If the company’s expenses are too high, this will show up on an income statement. Choices A and D are not directly relevant to the information on an income statement. Choices C and E do not show up on an income statement.