Which financial statement shows a company’s revenues and expenses over a period?

Which financial statement shows a company’s revenues and expenses over a period?

• A. Balance sheet
• B. Cash flow statement
• C. Income statement
• D. Statement of shareholders' equity

Answer: (C)

The income statement is the financial statement that summarizes a company's revenues and expenses over a specific period, typically a quarter or a year. This statement essentially provides a clear picture of the company's operational performance, indicating how much money the business earned (revenues) and how much it spent (expenses) during that period. The difference between revenues and expenses represents the net income or loss, which is a crucial measure of profitability. The income statement is integral for stakeholders such as investors and management as it helps evaluate the efficiency of the company and its ability to generate profit from its operations. It focuses solely on the company's financial performance within a designated timeframe, differentiating it from other financial statements that serve different purposes, such as assessing the financial position or cash flows.

The income statement is the financial statement that summarizes a company's revenues and expenses over a specific period, typically a quarter or a year. This statement essentially provides a clear picture of the company's operational performance, indicating how much money the business earned (revenues) and how much it spent (expenses) during that period. The difference between revenues and expenses represents the net income or loss, which is a crucial measure of profitability.

The income statement is integral for stakeholders such as investors and management as it helps evaluate the efficiency of the company and its ability to generate profit from its operations. It focuses solely on the company's financial performance within a designated timeframe, differentiating it from other financial statements that serve different purposes, such as assessing the financial position or cash flows.