A potential investor interested in evaluating a company's financial earning performance for the current period would probably examine which of the following financial statements?
A) Balance Sheet only
B) Income Statement only
C) Statement of cash flows and income statement
D) Statement of retained earnings and balance sheet

Question

Quizplus · Accepted Answer

An investor interested in evaluating a company's financial earning performance for the current period would probably examine the Income Statement, which shows the company's revenues, expenses, and profits or losses over a specific period of time. The other financial statements may provide important information about the company's financial position and changes in equity, but do not directly show earnings performance.

A Potential Investor Interested in Evaluating a Company's Financial Earning