Which financial statement for a business would you look at to determine the company's earnings performance during an accounting period?
A) Balance sheet.
B) Income statement.
C) Statement of cash flows.
D) The Management Assessment.

Question

Which financial statement for a business would you look at to determine the company's earnings performance during an accounting period? 
A) Balance sheet.
B) Income statement.
C) Statement of cash flows.
D) The Management Assessment.

Quizplus · Accepted Answer

The income statement shows a company's revenues and expenses during an accounting period, allowing for the calculation of its profit or loss, which is the primary indicator of earnings performance. The balance sheet shows a company's assets, liabilities, and equity at a specific point in time, and the statement of cash flows details the sources and uses of a company's cash during an accounting period. The management assessment is not a financial statement and does not provide objective financial information about a company's earnings performance.

Which Financial Statement for a Business Would You Look at to Determine