Final answer:
The purpose of an income statement is to provide a summary of a company's revenues, expenses, and profits over a specific period of time. It helps businesses assess their financial performance and make informed decisions about operations.
Step-by-step explanation:
The purpose of an income statement is to provide a summary of a company's revenues, expenses, and profits over a specific period of time, typically a month, quarter, or year. It shows how much money the company made from its sales and other sources of income, as well as how much it spent on various expenses such as salaries, rent, and utilities. The income statement helps businesses assess their financial performance, make informed decisions about operations, and evaluate the profitability of their operations.