Which of the following is the primary objective of an income statement?
A)Providing managers with detailed information about where the enterprise stands at a specific date.
B)Providing users outside the business organization with information about the company's operating results for a period of time.
C)Reporting to the Internal Revenue Service the company's taxable income.
D)Indicating to investors in a particular company the current market values of their investments.

Question

Quizplus · Accepted Answer

The primary objective of an income statement is to provide users outside the business organization with information about the company's operating results for a period of time. This includes revenues earned and expenses incurred to generate those revenues, and ultimately whether the company has made a profit or incurred a loss. The income statement is a key financial statement that helps investors and other stakeholders assess the financial performance of a company.

Which of the Following Is the Primary Objective of an Income