Which financial statement for a business would you look at to determine the company's performance during an accounting period?

Question

Quizplus · Accepted Answer

The statement of earnings, also known as the income statement, shows a company's revenue, expenses, and net income (or loss) for a specific period of time, usually a quarter or a year. It is the best choice for analyzing a company's performance during an accounting period, as it provides a clear picture of whether the company is generating profits or losses. The other financial statements - statement of changes in equity, statement of cash flows, and statement of financial position - are also important, but focus on different aspects of a company's financial health.

Which Financial Statement for a Business Would You Look at to Determine