Accounting for IGCSE & O level - Advanced Principles (Section 4 - No. 33)

What is a key use of the income statement?

To assess a company’s ability to meet its long-term obligations.

To determine the amount of cash a company has on hand.

To evaluate a company’s profitability over a period of time.

To calculate the market value of a company.

The income statement presents a company’s revenues, expenses and net profit/loss over a period.