Accounting for IGCSE & O level - Final Statements (Section 10 - No. 11)
Which of the following statements best describes the purpose of an income statement?
To report a company's financial position at a specific point in time.
To detail the inflows and outflows of cash during a period.
To summarize a company's revenues, expenses, and profitability over a period.
To list a company's assets, liabilities, and equity at the end of an accounting period.
Explanation
The income statement's primary purpose is to provide a summary of a company's financial performance over a specified period.
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