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Which financial statement matches the characteristic of showing the company's earnings for a specified period?

A. Income statement
B. Statement of retained earnings
C. Both A and B
D. None of the above

User Roopunk
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1 Answer

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Final answer:

The correct answer is A. Income Statement.

Step-by-step explanation:

The financial statement that matches the characteristic of showing the company's earnings for a specified period is the Income Statement. This statement, also known as the Profit and Loss Statement, details a company's revenues and expenses to provide a clear view of its profitability over a certain period, which is usually a quarter or a year.

While the Statement of Retained Earnings shows how the company's earnings are retained in the business or distributed as dividends, it does not provide the detailed account of earnings through revenues and expenses in the same way the Income Statement does. Therefore,

User Stefan Vasiljevic
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