The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:
A)Balance sheet.
B)Statement of retained earnings.
C)Statement of cash flows.
D)Income statement.
E)Statement of financial position.

Question

Quizplus · Accepted Answer

The income statement is the financial statement that reports whether the business earned a profit and also lists the revenues and expenses. The balance sheet reports the assets, liabilities, and equity at a point in time, whereas the statement of retained earnings reports changes in the business's earnings that have been kept in the company rather than paid out as dividends. The statement of cash flows reports the inflows and outflows of cash during a period, and the statement of financial position is another term for the balance sheet.

The Financial Statement That Reports Whether the Business Earned a Profit