Which of the following is not an element of financial statement A. Liability B. Capital C. Income Statement D. Assets

Break Down the Problem

1. Identify the components of financial statements.
2. Determine which option does not fit as an element of financial statements.

Relevant Concepts

• Financial statements typically include elements such as assets, liabilities, equity (or capital), and income (revenues and expenses).
• Common types of financial statements are the balance sheet, income statement, statement of cash flows, etc.

Analysis and Detail

1. Liabilities: Financial obligations or debts that a company owes to others.
2. Capital: Often referred to as equity, representing the ownership value in a business.
3. Income Statement: A financial statement that summarizes revenues and expenses to show net income or loss, but it is not an element itself—rather, it is a type of financial statement.
4. Assets: Resources owned by a company that have economic value.

Verify and Summarize

Among the options provided, the "Income Statement" stands out as it represents a category of financial statement rather than an element in financial accounting terminology.

Final Answer

C. Income Statement is not an element of financial statements.