Business FinancesQuestion 1141 of 1605
Which statement summarizes revenues and expenses over a PERIOD of time to show profit or loss?
a.Trial balance
b.Balance sheet
c.Income statement (profit and loss statement)
d.Statement of retained earnings only
Explanation
The income statement, also called the profit and loss (P&L) statement, reports revenues minus expenses over a period (a month, quarter, or year) to show net profit or loss. The balance sheet, by contrast, is a point-in-time snapshot.
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