Which one of the following is the financial statement that summarizes a firm's revenue and expenses over a period of time?
A) Income statement
B) Balance sheet
C) Statement of cash flows
D) Tax reconciliation statement
E) Market value report

Question

Quizplus · Accepted Answer

An income statement is the financial statement that summarizes a firm's revenue and expenses over a period of time, usually a month, a quarter, or a year. It shows whether the firm generated a profit or a loss during the given period. The balance sheet, on the other hand, shows the firm's assets, liabilities, and equity at a specific point in time. The statement of cash flows shows the inflows and outflows of cash during a period, while the tax reconciliation statement reconciles the firm's taxable income with its financial income. The market value report provides information on the current market value of the firm's assets, liabilities, and equity.

Which One of the Following Is the Financial Statement That