The firm's revenues and expenses over a period of time are reported on the firm's:
A)income statement or statement of financial position.
B)income statement or statement of financial performance.
C)balance sheet or statement of financial performance.
D)balance sheet or statement of financial position.

Question

Quizplus · Accepted Answer

The income statement, also known as the statement of financial performance, reports a company's revenues and expenses over a specific period of time. This statement helps assess the company's profitability by showing how much money it is generating and spending. The balance sheet, also known as the statement of financial position, provides the company's financial snapshot, reporting its assets, liabilities, and equity at a specific point in time.

The Firm's Revenues and Expenses Over a Period of Time