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Which financial statement answers the question, "What is my profit for (time period)?"

a. Statement of Cash Flows
b. Balance Sheet
c. Income Statement
d. Statement of Retained Earnings

User Findwindow
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Final answer:

The Income Statement is the financial statement that shows a company's profit for a specific time period, such as quarterly or annually. Using revenues and expenses, the Income Statement reveals the net income or loss.

Step-by-step explanation:

The financial statement that answers the question, "What is my profit for (time period)?" is the c. Income Statement. This statement provides a summary of a company's revenues and expenses over a specific period, typically a month, quarter, or year, ultimately showing the net income or loss (profit). For example, if a firm had sales revenue of $1 million last year and incurred expenses of $600,000 on labor, $150,000 on capital, and $200,000 on materials, the firm's accounting profit would be calculated by subtracting total expenses from total revenues, leading to a profit of $50,000.

User FRules
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