Final answer:
The income statement is focused on calculating the net income by subtracting expenses from revenues, showing a company's financial performance over a period, rather than providing a snapshot of assets and liabilities like the balance sheet.
Step-by-step explanation:
The correct option that describes the information reported in the income statement is: Net income for the period is calculated by subtracting expenses from revenues. This statement represents the fundamental equation of the income statement, which is designed to show the profitability of a company over a specific period.An income statement is one of the core financial statements used in accounting. It reflects the company's financial performance, providing a summary of how the company generates revenues and incurs expenses through both operating and non-operating activities. It displays the net profit or loss over a specified time by subtracting total expenses from total revenues. Unlike the balance sheet, which is a snapshot of the firm's financial position at a point in time, the income statement provides information about the firm's operations over an entire reporting period. Therefore, it's a critical tool for assessing the ongoing profitability and operational efficiency of the business.Conclusion The income statement is fundamentally concerned with a company's revenues and expenses, leading to the calculation of net income, and should not be confused with the balance sheet, which relates to assets, liabilities, and stockholders' equity.