The firm's revenues and expenses over a period of time are reported on the firm's:
A)income statement or statement of financial performance.
B)income statement or statement of financial position.
C)balance sheet or statement of financial performance.
D)balance sheet or statement of financial position.

Question

Quizplus · Accepted Answer

The income statement, also known as the statement of financial performance, reports the revenues and expenses of a firm over a period of time. The balance sheet, also known as the statement of financial position, reports a snapshot of a firm's assets, liabilities, and equities at a specific point in time. Therefore, option A is the only correct choice.

The Firm's Revenues and Expenses Over a Period of Time