The accounting statement which is specifically designed to measure and report on how much profit an entity has made is:
A) the balance sheet.
B) the cash flow statement.
C) the statement of comprehensive income.
D) all of the above.

Question

Quizplus · Accepted Answer

The statement of comprehensive income is the accounting statement specifically designed to measure and report on how much profit an entity has made. The balance sheet reports on an entity's assets, liabilities, and equity at a specific point in time, while the cash flow statement reports on an entity's cash inflows and outflows over a specific period of time.

The Accounting Statement Which Is Specifically Designed to Measure and Report