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

Question

Quizplus · Accepted Answer

The income statement shows the revenues earned and expenses incurred by a company during a specific accounting period and helps in determining whether the company made a profit or incurred a loss. The cash budget helps in managing cash inflows and outflows, the balance sheet shows the financial position of a company at a specific point in time, and the statement of cash flows shows the cash inflows and outflows from operating, investing, and financing activities.

Which of the Following Indicates Whether a Firm Earned a Profit