Question

question 3
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income statement shows:
select one:
a. changes in owner’s equity only
b. profit over a period
c. assets at a point
d. only cash flows

Explanation:

An income statement summarizes revenues and expenses to calculate net profit/loss for a specific time frame (e.g., a month/year). Option a is incorrect because changes in owner’s equity are shown in the statement of changes in equity; option c refers to the balance sheet (assets at a point in time); option d refers to the cash flow statement. Thus, the income statement’s core purpose is to show profit over a period.

Answer:

b. Profit over a period