Which financial statement reports a contractor's revenue and expenses over a period of time and shows the net profit or loss?
Explanation
The income statement, also called the profit and loss statement, gathers revenue and expense over a month, quarter or year and ends in net profit or loss. The balance sheet reports position at a single date, not performance over time. A schedule of values is a contract document dividing the price into line items for billing, not a financial statement. And the statement of changes in equity does cover a period, but it explains movements in equity rather than how the profit was earned.
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