Which of the basic financial statements is best used to answer the question,"How profitable is the business?"
A)Balance sheet
B)Income statement
C)Statement of shareholders' equity
D)Accounts receivable aging schedule

Question

Quizplus · Accepted Answer

The income statement shows a company's revenues and expenses during a specific period of time, and ultimately calculates the net income or loss of the business. Therefore, it is the best statement to answer the question of how profitable the business is.

Which of the Basic Financial Statements Is Best Used to Answer