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Which of the following is NOT shown in the income statement of a company?

easy MCQ 1 mark Class 12 · Accountancy · Financial Statements of a Company
  1. Depreciation expense
  2. Interest received
  3. Dividend received
  4. Issuance of shares
Answer
Issuance of shares

The correct answer is Issuance of shares — Conclude that issuance of shares is not shown in the income statement.

Step-by-step solution

  1. Identify items that appear in the income statement such as revenue, expenses and other incomes.
  2. Recognise that issuance of shares is a financing activity and therefore does not appear in the income statement.
  3. Conclude that issuance of shares is not shown in the income statement.
Common mistake: Confusing dividend received with issuance of shares

Concept tested: Income statement components

Published · How this solution was prepared and checked

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