Corporate income statements are designed primarily to show:
A) cash flows during a period.
B) account balances at the end of a period.
C) performance during a period.
D) market values of assets and liabilities.

Question

Quizplus · Accepted Answer

Corporate income statements are designed to show the performance of a company during a certain period, usually a quarter or a year. It shows the revenue earned, expenses incurred, and net profit or loss generated during that time. It does not show cash flows or account balances at the end of the period, nor does it show market values of assets and liabilities.

Corporate Income Statements Are Designed Primarily to Show