The income statement reports the financial:
A) position of an entity at a specific period of time.
B) position of an entity over a specified period of time .
C) performance of an entity at a specific period of time.
D) performance of an entity over a specified period of time.

Question

Quizplus · Accepted Answer

The income statement shows the financial performance of an entity over a specified period of time, typically a year. It reports the revenues, expenses, gains, and losses during that period and calculates the entity's net income or loss. It does not reflect the entity's financial position at a specific point in time, which is shown in the balance sheet.

The Income Statement Reports the Financial