Learn how invoices are summarized on the Income Statement and understand the core principles of NetSuite accounting and finance functionality.
Table of Contents
Question
On which Financial Statement are Invoices summarized?
A. Accounts Payable Aging
B. Balance Sheet
C. Income Statement
D. General Ledge
Answer
C. Income Statement
Explanation
Invoices are summarized on the Income Statement. This is because invoices represent revenue transactions, which are recorded as part of the company’s revenues on the Income Statement. When an invoice is issued, it indicates that a service or product has been delivered, and the company has earned the revenue, even if payment has not yet been received. This is in accordance with the accrual basis of accounting, where revenues are recognized when earned, not when cash is received.
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