Which of the following summarizes a firm's financial performance over a period of time?
A) Balance sheet
B) Profitability statement
C) Income statement
D) Strategic profit statement
E) Financial leverage statement

Question

Quizplus · Accepted Answer

The income statement summarizes a firm's financial performance over a period of time, usually over a month, quarter, or year, by showing the revenue generated, expenses incurred, and the resulting net income or loss. The balance sheet, on the other hand, gives a snapshot of a firm's financial position at a particular point in time, while the profitability statement and strategic profit statement are not commonly used financial statements, and the financial leverage statement is not a recognized financial statement at all.

Which of the Following Summarizes a Firm's Financial Performance Over