An Income statement
A) summarizes the changes in owner's equity for a specific period of time.
B) reports the changes in assets, liabilities, and owner's equity over a period of time.
C) reports the assets, liabilities, and owner's equity at a specific date.
D) presents the revenues and expenses for a specific period of time.

Question

Quizplus · Accepted Answer

An income statement presents the revenues and expenses for a specific period of time, usually a month, quarter, or year. It shows whether a company has made a profit or incurred a loss during that time. The purpose of the income statement is to help users of financial statements evaluate the company's performance over time and assess its ability to generate future cash flows. Therefore, option D is the best choice.

An Income Statement