Which One is False? Common Stock is Shown on the Balance Sheet Salary Expense is shown on the Income Statement Cash is Shown on the Income Statement Net Income is Shown on the Statement of Changes in Owners Equity

Common misconceptions can occur when discussing financial statements; for instance, cash is actually shown on the balance sheet, not the income statement. The income statement focuses on revenues and expenses, detailing how much money was earned or spent during a specific period, leaving cash balances for the more comprehensive balance sheet. Moreover, net income does find its place on the statement of changes in owners' equity. This statement shows how net income affects equity over a period, allowing investors to understand how profits are reinvested or distributed. Always keep an eye on where these figures reside to avoid confusion!