The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or an year, is called a(n):
A) prior period statement.
B) statement of retained earnings.
C) income statement.
D) balance sheet.

Question

Quizplus · Accepted Answer

An income statement presents the revenues and expenses of a business for a specific period of time, such as a month or a year. Prior period statement refers to a financial statement that shows the financial results of a previous period, while a statement of retained earnings presents the changes in a company's retained earnings over a specific period. A balance sheet presents a snapshot of a company's financial position at a given point in time. Therefore, the best choice is C, income statement.

The Financial Statement That Presents a Summary of the Revenues