Which financial statement shows the company's revenues and expenses for a period?

• A. Income Statement
• B. Balance Sheet
• C. Statement of Cash Flows
• D. Statement of Changes in Equity

Answer: (A)

Revenues and expenses over a period are shown on the income statement, which tracks how well a company performed during that time frame. It starts with revenues, then subtracts costs and expenses to arrive at net income or net loss for the period. This time-based view distinguishes it from the other statements: the balance sheet shows what the company owns and owes at a single point in time; the statement of cash flows shows how cash moved through the business during the period; the statement of changes in equity shows how owners’ equity changed over the period. So, for reporting performance through revenues and expenses over a specific period, the income statement is the correct one.