Reports the revenues generated and expenses incurred by the firm over an accounting period, such as a quarter or a year.
A) Balance sheet
B) Income statement
C) Statement of cash flow
D) Sources and uses of funds

Question

Quizplus · Accepted Answer

An income statement reports the revenues and expenses over a period of time, showing the net income or loss for that period. Choice A is incorrect because a balance sheet reports the firm's assets, liabilities, and equity at a point in time. Choice C is incorrect because a statement of cash flow reports the firm's cash inflows and outflows over a period of time. Choice D is incorrect because sources and uses of funds is a different financial statement that focuses on how a firm has obtained and utilized its funds.

Reports the Revenues Generated and Expenses Incurred by the Firm