The ﬁnancial statement summarizing a ﬁrm's performance over a period of time is the:
A) Statement of comprehensive income.
B) Statement of ﬁnancial position.
C) Statement of cash ﬂows.
D) Tax reconciliation statement.
E) Shareholders' equity sheet.

Question

Quizplus · Accepted Answer

The statement of comprehensive income, also known as the income statement, summarizes a firm's financial performance over a period of time by showing revenues, expenses, gains, and losses. It is an important tool for investors and creditors to evaluate a company's profitability and ability to generate cash flows. The other options, such as the statement of financial position, statement of cash flows, tax reconciliation statement, and shareholders' equity sheet, provide different information about a company's financial position and are not solely focused on summarizing performance over a period of time.

The ﬁNancial Statement Summarizing a ﬁRm's Performance Over a Period