A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the
A) income statement
B) balance sheet
C) statement of cash flows
D) statement of retained earnings

Question

Quizplus · Accepted Answer

The income statement shows the revenue and expenses for a specific period of time, and the resulting net income or loss. This information allows a financial statement user to determine if the company was profitable or not during that period. The balance sheet, statement of cash flows, and statement of retained earnings provide important information about a company's financial position and activities, but do not directly indicate profitability for a specific period of time.

A Financial Statement User Would Determine If a Company Was