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) balance sheet
B) income statement
C) cash flow statement
D) retained earnings statement

Question

Quizplus · Accepted Answer

The income statement shows a company's revenue, expenses, and net income or loss for a specific period of time (usually a month, quarter, or year). This information is important for investors to evaluate the company's financial performance for the current period. The balance sheet provides a snapshot of a company's financial position at a specific point in time, the cash flow statement shows the inflows and outflows of cash for a specific period, and the retained earnings statement shows changes in a company's retained earnings over time. While these statements are also important for evaluating a company's overall financial health, they do not provide as much information about the current period's performance as the income statement does.

Which of the Following Financial Statements Would a Potential Investor