Which financial statement is best used to answer the question, 'How profitable is the business?'

Question

Quizplus · Accepted Answer

The income statement shows the revenue and expenses of a business over a set period of time, typically a year. It calculates the net income or loss for the same period, providing information about the profitability of the business. Therefore, it is the best choice to answer the question regarding the profitability of the business.

Which Financial Statement Is Best Used to Answer the Question