The financial statement summarizing a firm's accounting performance over a period of time is the:
A) income statement.
B) balance sheet.
C) statement of cash flows.
D) tax reconciliation statement.
E) shareholders' equity sheet.

Question

Quizplus · Accepted Answer

The income statement summarizes a firm's revenues, expenses, and net income over a period of time. It shows the profitability of the firm during the given period. The other statements listed represent different aspects of a firm's financial position, but do not summarize accounting performance over a specific period of time.

The Financial Statement Summarizing a Firm's Accounting Performance Over a Period