karoliukas

Do gains and losses, as well as expenses appear on the income statement?

A) Only expenses appear on the income statement.

B) Only gains and losses appear on the income statement.

C) Both appear on the income statement.

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Gains and losses result from, transactions that are not a part of the firm’s normal business operations. Expenses are amounts that are incurred to generate revenue; thus, expenses result from the firm’s ongoing operations. Both are included on the income statement.