Which two financial statements are used to assess profitability?

Question

Quizplus · Accepted Answer

The income statement and balance sheet are used to assess profitability. The income statement shows revenue earned and expenses incurred during a specific period, resulting in the net income/loss of the organization, while the balance sheet provides a snapshot of the organization's financial position, including assets, liabilities, and equity. Together, these two statements can provide a complete picture of the organization's financial health and profitability.

Which Two Financial Statements Are Used to Assess Profitability