Final answer:
The Income Statement is the financial statement that helps determine a company's net income or profit, as it summarizes revenues and expenses over a period, showing the net income earned. (Option B).
Step-by-step explanation:
To determine a company's net income or profit, you would look at the Income Statement. This financial statement provides a summary of the company's revenues and expenses over a specific period, typically a quarter or year, and results in the net income or loss for that period. The income statement is often referred to as the Profit & Loss Statement or the Statement of Operations.
The Balance Sheet shows the company's assets, liabilities, and shareholders' equity at a specific point in time. It does not provide information about the company's profitability over a period. The Cash Flow Statement shows the inflows and outflows of cash but is more focused on liquidity than profitability. The Statement of Retained Earnings shows changes in retained earnings, which is a component of shareholders' equity, over a period but will not provide net income directly.
Therefore, the correct answer to the question of which financial statement would help you determine net income or profit is B. Income Statement.