__________ is a summary of the profitability of the firm over a period of time, such as a year.
A)The balance sheet
B)The income statement
C)The statement of cash flows
D)The audit report

Question

Quizplus · Accepted Answer

The income statement provides a summary of the firm's profitability over a period of time, usually a year. It shows the revenue earned, expenses incurred, and the resulting net income or loss. The balance sheet shows the firm's assets, liabilities, and equity at a specific point in time. The statement of cash flows shows the sources and uses of cash over a period of time. The audit report is a separate document prepared by an external auditor, which provides an opinion on the accuracy and reliability of the financial statements.

__________ Is a Summary of the Profitability of the Firm