Question

A firm's ________ reports the profit or loss for the firm over a specified time period.

a. income statement
b. balance sheet
c. statement of cash flows
d. bank statement

Answer 1

The answer is : a. income statement

A firm's income statement will calculate all of the firm's Earning and deduct it with all of the firm's expenditure.

If the results is a surplus, then the firm gain a profit. If it's a deficit, it means that the firm experience a loss.

This income statement usually renewed every year