Final answer:
The income statement indeed reports a firm's revenues and expenses over a specific period, such as one year, and the answer is A. True. The total revenue is calculated from sales, and total costs account for expenses.
Step-by-step explanation:
An income statement reports the firm's revenues and expenses for a specific period of time, such as one year. The statement indicates if the answer to the question is A. True. Total revenue is a key component of the income statement and can be calculated by the formula Total Revenue = Price x Quantity. This represents the firm's income generated from the sale of its goods or services. On the other side, expenses include the total costs involved in producing and selling these products. These costs can vary in the short run and long run, and understanding this is essential for financial analysis and business operations.