Which of the following represents an attempt to measure the earnings of the firm's operations over a given time period?

Question

Quizplus · Accepted Answer

The income statement measures the earnings of the firm's operations over a given time period by subtracting expenses from revenues. The balance sheet provides a snapshot of the company's assets, liabilities and equity at a specific point in time. The cash flow statement shows the inflows and outflows of cash during a given time period, but does not necessarily indicate the profitability of the firm. The statement of changes in equity shows the changes in shareholder's equity over a period of time, but does not directly measure the earnings of the operations.

Which of the Following Represents an Attempt to Measure the Earnings