Accounting for IGCSE & O level - Final Statements (Section 3 - No. 2)
What is the purpose of preparing an income statement?
To determine the company's financial position at a specific point in time.
To evaluate the performance of the company over a specific period.
To track the movement of cash in and out of the company.
To determine the amount of assets the company owns.
Explication
The income statement evaluates the company's performance over a period.