Which statement shows revenue and expenses over a period?

Which statement shows revenue and expenses over a period?

• A. Cash Flow Statement
• B. Balance Sheet
• C. Income Statement
• D. Trial Balance

Answer: (C)

An income statement is the financial report that shows what the business earned (revenue) and what it spent (expenses) over a specific period, ending with net profit or loss. This period-based view is exactly what the question asks for, because it focuses on revenue and expenses within a time frame. In contrast, a cash flow statement tracks actual cash movements, not all revenues and expenses. A balance sheet shows assets, liabilities, and equity at a single point in time. A trial balance lists ledger balances to check that debits equal credits.

An income statement is the financial report that shows what the business earned (revenue) and what it spent (expenses) over a specific period, ending with net profit or loss. This period-based view is exactly what the question asks for, because it focuses on revenue and expenses within a time frame.

In contrast, a cash flow statement tracks actual cash movements, not all revenues and expenses. A balance sheet shows assets, liabilities, and equity at a single point in time. A trial balance lists ledger balances to check that debits equal credits.