Accounting for IGCSE & O level - Final Statements (Section 11 - No. 37)

What is the purpose of the income statement?

To show assets, liabilities, and owner's equity at a specific point in time.

To show the inflows and outflows of cash.

To determine the financial performance of a business over a period.

To represent the net worth of a company.

The income statement reveals whether a business has made a profit or loss over an accounting period.