Which statement(s) summarizes the revenues, gains, expenses, and losses of an entity?
A) Balance sheet
B) Statement of cash flows and income statement
C) Statement of retained earnings and statement of operations
D) Income statement

Question

Quizplus · Accepted Answer

The income statement summarizes the revenues, gains, expenses, and losses of an entity for a specific period of time. It shows the entity's net income or net loss and is also known as the profit and loss statement. Other financial statements such as the balance sheet, statement of cash flows, statement of retained earnings, and statement of operations provide different information about the entity's financial status and activities.

Which Statement(s) Summarizes the Revenues, Gains, Expenses, and Losses of an Entity