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Which financial statement presents the results of operations?

a. Balance sheet.
b. Statement of financial position.
c. Income statement.
d. Statement of cash flows.

User Shery
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1 Answer

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Final answer:

The income statement is the financial statement that shows the results of a company's operations by detailing revenues and expenses over a specific period, unlike the balance sheet which lists assets and liabilities.

Step-by-step explanation:

The financial statement that presents the results of operations is the income statement. This is different from a balance sheet, which is an accounting tool that lists assets and liabilities. Assets represent value owned and can be used to produce something, such as cash or a home. Liabilities are debts or obligations, like a mortgage. The difference between assets and liabilities is known as net worth or in the case of a bank, bank capital.

The bank's assets may include cash in vaults, while liabilities could consist of money owed to depositors. The income statement, however, details a company's revenues and expenses over a specific period and reflects the company's financial performance, ultimately showing if the company made a profit or loss.

User Rahat
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