An income statement presents the revenues (income) and expenses for a specific period of time, typically for a month or a year. It provides information about the profitability of a business during that period. Choice A describes a statement of retained earnings, choice B describes a statement of cash flows, and choice C describes a balance sheet.

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An Income Statement

Question 172

Multiple Choice

An income statement

A) summarizes the changes in retained earnings for a specific period of time.
B) reports the changes in assets, liabilities, and stockholders' equity over a period of time.
C) reports the assets, liabilities, and stockholders' equity at a specific date.
D) presents the revenues and expenses for a specific period of time.

Correct Answer: