The income statement presents a summary of the:
A)cash inflows and outflows of an entity.
B)assets and liabilities of an entity.
C)revenues and expenses of an entity for a specific time period.
D)changes that occurred in the stockholders' equity of an entity.

Question

Quizplus · Accepted Answer

The income statement summarizes the revenues (cash inflows) and expenses (cash outflows) incurred by an entity during a specific time period, typically a month, quarter, or year. It shows the net income or loss of the entity during that period, which is the amount by which revenues exceed expenses or vice versa. The income statement provides important information about the profitability of the entity and its ability to generate income.

The Income Statement Presents a Summary of The