Question

Define what the income statement reports by completing the following sentence: The income statement describes a company's_______ and________ along with the resulting net income or loss over a period of time due to earnings related activities.

Answer 1

The correct word for the blank space is: revenue; expenses.

Step-by-step explanation:

The Income Statement is a report that measures a company's financial performance over a specific accounting period. The statement is also called The Profit and Loss Statement and Earnings Statement. Public traded companies must produce income statements, balance sheets, and cash flow statements for each quarter and each year following the Generally Accepted Accounting Principles (GAAP). There they mainly record the firm's revenues and expenses.