Profit appears on which of the following statement(s)?
A) Balance sheet
B) Income statement
C) Statement of changes in equity
D) Statement of cash flows
E) Both an income statement and statement of changes in equity

Question

Quizplus · Accepted Answer

Profit is primarily reported on the income statement, where a company's revenues and expenses are detailed to show the net income (profit) for the period. It also affects the statement of changes in equity, as retained earnings (part of equity) change with the net income earned during the period, after dividends are paid out.

Profit Appears on Which of the Following Statement(s)