[amp_mcq option1=”Income statement” option2=”Balance sheet” option3=”Cash flow statement” option4=”Statement of changes in equity” correct=”option1″]
The correct answer is A. Income statement.
An income statement is a financial statement that reports the revenues and expenses of a company over a specific period of time, usually a quarter or a year. It shows the company’s profitability by calculating its net income, which is the difference between its revenues and expenses.
A balance sheet is a financial statement that reports a company’s assets, liabilities, and equity at a specific point in time. It shows the company’s financial position by providing a snapshot of its assets, liabilities, and equity.
A cash flow statement is a financial statement that reports a company’s cash inflows and outflows over a specific period of time, usually a quarter or a year. It shows the company’s ability to generate cash and meet its financial obligations.
A statement of changes in equity is a financial statement that reports the changes in a company’s equity over a specific period of time, usually a quarter or a year. It shows the company’s financial performance by providing information on how its equity has changed over time.