Which financial report shows revenue, expenses, and net income or loss for a specific period?

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

Answer: (A)

Tracking profitability over a set period is captured in the income statement. It lists the money earned from operations (revenue) and the costs incurred (expenses) during that time, with the result shown as net income or net loss. This period-based view is essential for assessing performance, comparing periods, and understanding profitability trends. In contrast, the balance sheet shows what the company owns and owes at a specific moment, not a flow of revenues and expenses. The cash flow statement focuses on cash movements—how cash came in and went out—over the period, which relates to liquidity rather than profit. Because the question asks for revenue, expenses, and net income or loss for a specific period, the income statement is the correct report.