Who is the income statement designed to inform?
A) creditors
B) investors
C) lenders
D) The income statement is designed to inform all of these users.

Question

Quizplus · Accepted Answer

The income statement is a financial statement that provides information about a company's financial performance over a specific period. It is designed to inform a wide range of users, including creditors, investors, and lenders, about the company's profitability, revenue, expenses, and net income. These stakeholders use this information to make informed decisions regarding lending, investing, or extending credit to the company.

Who Is the Income Statement Designed to Inform