The founder of Wonder Wheels, a motorcycle manufacturer, wants to know the net profit made by the company over the past one year. The financial report he should look at is the _____.

Question

Quizplus · Accepted Answer

The income statement shows the revenue, expenses, and net profit (or loss) of a company over a specific period of time, usually a year. It will provide the founder with the information he is looking for regarding Wonder Wheels' net profit over the past year. The financial ratio report provides information on liquidity, profitability, and other financial performance measures, but will not give a specific net profit amount. The balance sheet shows a company's assets, liabilities, and equity at a specific point in time, but does not provide information on the company's net profit. The annual budget report outlines the projected income and expenses for the upcoming year, rather than reporting on the previous year's performance.

The Founder of Wonder Wheels, a Motorcycle Manufacturer, Wants to Know