Question

A corporation prepares a (n)

at the end of the accounting period to ascertain its net profit or loss,

Answer 1

An income statement

Step-by-step explanation:

An income statement is among the three financial statements that a company prepares to report its performance over an accounting period. The income statement shows whether a company made a profit or loss in a particular financial year. It is also known as a profit and loss statement.

The income statement is divided into three sections. The revenue section that displays all the income received, followed by the expenses section and the profit section. Profit or loss is determined by subtracting total expenses from the net revenue. If the result is positive, the business made a profit. Losses occur when expenses exceed revenues.