Which accounting statement is specifically designed to measure and report on how much profit an entity has made?
A)The statement of cash flows
B)The statement of financial position
C)The statement of financial performance
D)All of the above

Question

Quizplus · Accepted Answer

The statement of financial performance, also known as the income statement or profit and loss statement, is designed to measure and report on how much profit or loss an entity has made during a specific period of time. The statement of cash flows reports on the cash inflows and outflows during a period, while the statement of financial position, also known as the balance sheet, reports on an entity's assets, liabilities, and equity at a specific point in time.

Which Accounting Statement Is Specifically Designed to Measure and Report