A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing
A) the income statement
B) the balance sheet
C) the statement of cash flows
D) the retained earnings statement

Question

Quizplus · Accepted Answer

The income statement shows the revenues and expenses during a specific period of time, allowing a user to determine if the company was profitable or not. The other financial statements (balance sheet, statement of cash flows, and retained earnings statement) do not directly show profitability for a specific period of time.

A Financial Statement User Would Determine If a Company Was