In the Context of Financial Tools, Identify a True Statement

In the context of financial tools, identify a true statement about income statements.

A) Income statements summarize a firm's assets and liabilities.
B) For an entrepreneurial firm, predicting sales is key to developing income statements.
C) Income statements only estimate the net profit figures for a firm during each financial quarter.
D) When creating income statements, entrepreneurs must be liberal when estimating demand for their firms' products.