Which financial statement summarizes the operating performance of a company over a period of time?
A) statement of cash flows
B) statement of stockholders' equity
C) balance sheet
D) income statement

Question

Quizplus · Accepted Answer

The income statement summarizes a company's revenue, expenses, and net income over a period of time (usually a quarter or a year), making it the best choice for summarizing operating performance. The statement of cash flows reports on a company's cash inflows and outflows, the balance sheet shows the company's assets and liabilities at a point in time, and the statement of stockholders' equity explains changes in the company's equity over time.

Which Financial Statement Summarizes the Operating Performance of a Company