Which of the following financial statements would a potential investor most likely use to evaluate a company's financial performance for the current period?
A) cash flow statement
B) retained earnings statement
C) balance sheet
D) income statement

Question

Quizplus · Accepted Answer

Most investors would use the income statement to evaluate a company's financial performance for the current period. The income statement shows a company's revenues and expenses during a specific time period, which allows investors to see if the company is profitable or not. The other financial statements (cash flow statement, retained earnings statement, and balance sheet) provide important information but may not be as relevant for evaluating performance in the current period.

Which of the Following Financial Statements Would a Potential Investor