Which financial statement shows whether the business earned a profit or loss, and also lists the types and amounts of the revenues and expenses?
A)Balance sheet.
B)Statement of cash flows.
C)Income statement.
D)Statement of changes in equity.
E)Statement of financial position.

Question

Quizplus · Accepted Answer

The income statement shows whether the business earned a profit or loss and lists the types and amounts of the revenues and expenses. The balance sheet shows the company's assets, liabilities and equity position at a point in time, while the statement of cash flows shows the inflow and outflow of cash during a period of time. The statement of changes in equity shows the changes in the equity section of the balance sheet during a period of time. The statement of financial position is another term for the balance sheet.

Which Financial Statement Shows Whether the Business Earned a Profit