Which financial statement shows the total revenues that a firm earns and the total expenses the firm incurs to generate those revenues over a specific period of time-generally one year?
A)Balance sheet
B)Income statement
C)Statement of retained earnings
D)Statement of cash flows

Question

Quizplus · Accepted Answer

The income statement shows the total revenues earned and expenses incurred over a specific period of time, usually one year. It provides information about a company's profitability and is also known as the profit and loss statement. The balance sheet shows the company's assets, liabilities, and equity at a specific point in time. The statement of retained earnings shows the changes in a company's retained earnings over a period of time, and the statement of cash flows shows the inflows and outflows of cash during a specific period.

Which Financial Statement Shows the Total Revenues That a Firm