Which of the following indicates whether a company earned a profit or suffered a loss over the past accounting period?
A) balance sheet
B) income statement
C) statement of cash flows
D) cash budget

Question

Quizplus · Accepted Answer

The income statement reports a company's revenue, expenses, gains, and losses over a specific period, such as a quarter or a year. It calculates the net profit or loss of the business during that period, making it the best indicator of whether a company earned a profit or incurred a loss.

Which of the Following Indicates Whether a Company Earned a Profit