Accounting for IGCSE & O level - Final Statements (Section 11 - No. 39)
What is the purpose of the income statement?
To show the financial position of a business at a specific point in time.
To calculate and report a business's profits and losses over a period.
To list all assets, liabilities, and equity.
To show where the business's money came from.
Explication
The income statement is primarily used to calculate and report profits and losses over a period.