The major device for measuring the profitability of a firm over a defined period of time is the

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The income statement provides information on the revenue and expenses of a firm over a period, allowing the calculation of profit or loss. It is the primary tool for measuring the profitability of a firm over a defined period of time. The balance sheet provides information on the assets, liabilities, and equity of a firm at a point in time, while the statement of cash flows provides information on the cash inflows and outflows of a firm over a period, but neither on their own can give an accurate indication of profitability.

The Major Device for Measuring the Profitability of a Firm