The income statement:
A) shows financial position at a specific point in time.
B) shows financial performance for a specific time.
C) shows financial position for a specific time.
D) shows financial performance at a specific point of time.
E) none of these.

Question

Quizplus · Accepted Answer

The income statement (also known as the profit and loss statement) shows the financial performance of a company for a specific period of time, typically months or years. It details revenue earned and expenses incurred during that period, resulting in either a net profit or net loss. It does not show financial position at a specific point in time.

The Income Statement