The Statement of ___ is used by shareholders to assess company profitability.
A)Cash Flows
B)Shareholders' Equity
C)Financial Position
D)Income

Question

Quizplus · Accepted Answer

The statement of income, also known as the income statement or profit and loss statement, shows a company's revenues and expenses for a specific period of time. Shareholders can use this statement to assess the company's profitability by comparing the revenues and expenses, and determining the net income or loss. Choices A, B, and C refer to other financial statements that provide different types of information. The statement of cash flows shows how cash is generated and used by a company, the shareholders' equity statement shows changes in the value of shareholder ownership over time, and the statement of financial position, also known as the balance sheet, provides a snapshot of a company's financial position at a specific point in time.

The Statement of ___ Is Used by Shareholders to Assess