The financial statement that shows business results in terms of revenue and expenses is:
A)an income statement.
B)a balance sheet.
C)a statement of owner's equity.
D)the statement of cash flows.

Question

Quizplus · Accepted Answer

An income statement shows the business's revenues and expenses over a specific period, usually a month, quarter, or year. It provides a clear picture of the company's financial performance during that time, showing whether it made a profit or a loss. The other options, such as the balance sheet, statement of owner's equity, and statement of cash flows, provide different types of financial information.

The Financial Statement That Shows Business Results in Terms of Revenue