Final answer:
The income statement is a precursor to the balance sheet and provides information on a company's revenues, expenses, and profits or losses over a specific period of time.
Step-by-step explanation:
The financial statement that is a precursor to the balance sheet is called the income statement.
The income statement shows a company's revenues, expenses, and profits or losses over a specific period of time, usually a year. It provides information on how much money the company has earned and how much it has spent during that period.
By analyzing the income statement, you can determine the net income or net loss of the company, which is then included in the balance sheet to calculate the company's overall financial position.