The accounting statement which is specifically designed to measure and report on how much profit an entity has made is:
A) the statement of cash flows.
B) the statement of financial position.
C) the statement of financial performance.
D) all of the above.

Question

Quizplus · Accepted Answer

The statement of financial performance, also known as the income statement or profit and loss statement, is specifically designed to measure and report on how much profit an entity has made. The statement of cash flows and the statement of financial position (also known as the balance sheet) provide important financial information but are not designed to specifically report on profit.

The Accounting Statement Which Is Specifically Designed to Measure and Report