Which financial statement records all of a firms revenues and expenses for a given period and shows whether the firm is making a profit or experiencing a loss?
A) balance sheet
B) owner's equity statement
C) statement of cash flows
D) forecast
E) income statement

Question

Quizplus · Accepted Answer

The income statement, also known as the profit and loss statement, shows a firm's revenues and expenses for a specific period of time (such as a month or a year) and calculates the resulting profit or loss. It does not report any information about a firm's assets, liabilities, or equity, which are recorded on the balance sheet. It also does not show the movement of cash in and out of the business, which is reported on the statement of cash flows.

Which Financial Statement Records All of a Firms Revenues and Expenses