Which financial statement records all of a firm's revenues and expenses for a given period and shows whether the firm is making a profit or experiencing a loss?
A) Balance sheet
B) Owner's equity statement
C) Statement of cash flows
D) Forecast
E) Income statement

Question

Quizplus · Accepted Answer

The income statement records all of a firm's revenues and expenses for a given period and shows whether the firm is making a profit or experiencing a loss. The balance sheet shows the assets, liabilities, and equity of the firm at a specific point in time, the owner's equity statement shows the changes in equity over a period of time, the statement of cash flows shows the inflows and outflows of cash during a period, and a forecast is a prediction of future financial performance.

Which Financial Statement Records All of a Firm's Revenues and Expenses