The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called a(n):
A)Balance sheet.
B)Statement of retained earnings.
C)Statement of cash flows.
D)Income statement.
E)Statement of financial position.

Question

Quizplus · Accepted Answer

An income statement reports on a business's revenues, expenses, and net income or loss during a specific period of time (such as a month or a year). It is sometimes also referred to as a profit and loss statement. The other options listed (balance sheet, statement of retained earnings, statement of cash flows, and statement of financial position) report on different aspects of a company's financial performance or position.

The Financial Statement That Reports Whether the Business Earned a Profit