An itemized financial statement of the income and the expenses of a company's operations is called the
A)income and expense statement.
B)balance sheet.
C)cash flow statement.
D)assets and liabilities statement.
E)profit and loss statement.

Question

Quizplus · Accepted Answer

An itemized financial statement of the income and the expenses of a company's operations is commonly referred to as the profit and loss statement (or P&L statement, or income statement). This statement shows the revenues earned by a company over a specified period, deducting from them the costs and expenses incurred to generate those revenues, and arriving at the net profit or loss figure for the period. The other options, while they are other commonly used statements of a company's financial performance, are not specifically itemized statements of income and expenses. The balance sheet shows the assets, liabilities, and equity of a company at a specific point in time; the cash flow statement shows cash inflows and outflows over a period; and the assets and liabilities statement is not a commonly used term in financial reporting.

An Itemized Financial Statement of the Income and the Expenses