__________ of the profitability of the firm over a period of time such as a year.
A) The balance sheet is a summary
B) The income statement is a summary
C) That statement of cash flows is a summary
D) The audit report is a summary
E) None of these is a summary

Question

Quizplus · Accepted Answer

The income statement summarizes the revenues, expenses, and net income over a period of time such as a year, providing information on the profitability of the firm. The balance sheet shows the financial position of the company at a specific point in time, the statement of cash flows reports the cash inflows and outflows, and the audit report provides an opinion on the accuracy of the financial statements. Therefore, option B is the best choice for this question.

__________ of the Profitability of the Firm Over a Period