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One Manager (Adam)says That the Income Statement Should Be Strong

Question 75

Multiple Choice

One manager (Adam) says that the income statement should be strong this year because the company has achieved a high level of sales revenue.Another manager (Eve) says that even with strong sales revenue,the income statement might not look particularly good.What is Eve assuming?


A) That revenues this year were not as high as last year's
B) That revenues are not as high as Adam thinks they are
C) That selling expenses exceeded administrative expenses this year
D) That many other factors must be taken into account to arrive at an income statement
E) That income taxes will be high this year

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