Revenues ― cost of goods sold ― expenses = net income characterizes which financial statement?

Question

Quizplus · Accepted Answer

The formula "revenues - cost of goods sold - expenses = net income" explicitly refers to the calculation of net income, which is reported on the income statement. The balance sheet reports the company's assets, liabilities, and equity at a specific point in time. The statement of retained earnings shows changes in the company's earnings and dividends over a period of time. The statement of cash flows reports the company's cash inflows and outflows over a period of time. The term "statement of financial position" is less commonly used but can refer to the balance sheet.

Revenues ― Cost of Goods Sold ― Expenses = Net