What information does a firm's income statement provide to the viewing public?
A) an itemization of all of a firm's assets and liabilities for a defined period of time
B) a complete listing of all of a firm's cash receipts and cash expenditures for a defined period of time
C) a report of revenues and expenses for a defined period of time
D) a report of investments made and their cost for a specific period of time

Question

Quizplus · Accepted Answer

A firm's income statement provides a report of revenues and expenses for a defined period of time. It summarizes the firm's financial performance and shows whether it generated a net profit or a loss during that period. It does not provide information on assets, liabilities, cash flows, or investments.

What Information Does a Firm's Income Statement Provide to the Viewing