The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a (n)

A) prior period statement
B) statement of owner's equity
C) income statement
D) balance sheet

The income statement presents the revenues and expenses of a business and calculates the net income or loss for a specific period of time. Choice A, the prior period statement, is not a commonly used financial statement. Choice B, the statement of owner's equity, shows the changes in the owner's investment in the business and is not focused on revenues and expenses. Choice D, the balance sheet, presents the assets, liabilities, and equity of a business at a specific point in time and does not provide information on revenues and expenses over a specific period of time.