Which item is typically shown on an income statement?

• A. Net worth
• B. Current assets
• C. Sales
• D. Long term liabilities

Answer: (C)

An income statement tracks a period’s performance by showing what the company earned and what it spent. The main revenue figure, often labeled Sales (also called Revenue), appears at the top and represents money earned from selling goods or services during that period. This revenue is then reduced by costs and expenses to arrive at net income. The other items—net worth (equity), current assets, and long-term liabilities—are all balance-sheet items and belong on the balance sheet, not the income statement. So the item typically shown on an income statement is Sales, because it represents the period’s earnings from core business activities.