Final answer:
The income statement account is updated for gross profit each period when recognizing revenue over time.
Step-by-step explanation:
When recognizing revenue over time, the account that is updated for gross profit each period is the income statement account. This account captures all revenues earned and associated expenses incurred during a specific period.
For example, let's say a company recognizes revenue over time through a subscription model. In this case, the income statement account would be updated each period with the subscription revenue earned and the associated expenses such as marketing costs and customer support expenses.
By updating the income statement account, the company can calculate the gross profit for each period by subtracting the total expenses from the total revenue.