Ace the NACD Certification in 2025 – Lead the Governance Charge with Confidence!

Question: 1 / 400

Which of the following is NOT included in the income statement?

Revenue from operations

Cash flow from investing activities

The income statement focuses on a company's revenues and expenses over a specific period, presenting a summary of financial performance. The primary components of the income statement include revenue from operations, cost of goods sold, and various sales and operating expenses. These elements are crucial in determining the company's profitability.

Cash flow from investing activities, on the other hand, is reported in the statement of cash flows, not in the income statement. The statement of cash flows is designed to provide insights into the inflows and outflows of cash within operating, investing, and financing activities. Therefore, including cash flow from investing activities would not align with the purpose or structure of the income statement, making it the correct choice for this question.

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Sales and operating expenses

Cost of goods sold

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