Asked by levana znaty on Jun 03, 2024
Verified
__________ is a summary of the profitability of the firm over a period of time, such as a year.
A) The balance sheet
B) The income statement
C) The statement of cash flows
D) The audit report
E) None of the options are correct.
Income Statement
A financial statement showing a firm’s revenues and expenses during a specified period.
Profitability
A measure of the efficiency and effectiveness of a company's operations, indicated by its ability to generate income from its activities.
Summary
A brief statement or account of the main points of something, often used to provide a quick understanding or overview.
- Interpret the contents of major financial statements including the balance sheet, income statement, and statement of cash flows.
Verified Answer
ZK
Zybrea KnightJun 07, 2024
Final Answer :
B
Explanation :
The income statement summarizes a company's revenues and expenses over a specific period, typically a fiscal quarter or year, showing the company's profitability during that time.
Learning Objectives
- Interpret the contents of major financial statements including the balance sheet, income statement, and statement of cash flows.