Question

The financial statement that shows business results in terms of revenue and expenses is __________. : an income statement a balance sheet a statement of owner's equity the statement of cash flows

Answer 1

The income statement is the financial statement that represents business performance by reporting revenue and expenses, showing the net income or loss over a certain period.

Step-by-step explanation:

The financial statement that shows business results in terms of revenue and expenses is an income statement. An income statement provides a detailed account of a company’s financial performance over a specific period, typically a fiscal quarter or year. It begins with the total revenue or sales and then subtracts the costs and expenses involved in generating that revenue. The difference, known as the net income, represents the profit or loss over the period. In contrast, other financial statements like a balance sheet, a statement of owner's equity, and the statement of cash flows provide different perspectives on a company’s financial health but do not directly detail profit and loss.

Answer 2

Hello!

Short answer: The financial statement that shows business results in terms of revenue and expenses is an income statement. (Choice A)

Why?

An income statement is a company financial statement that gives out a report about a company's performance with their finance. It's also known as the profit and loss statement or statement of revenue and expense, and there are two parts: operating and non-operating.