Accounting for IGCSE & O level - Final Statements (Section 9 - No. 12)

Which of the following best describes the purpose of the income statement?
To present a company's assets, liabilities, and equity at a specific point in time.
To show how a company's cash balance has changed over a specific period.
To demonstrate a company's profitability over a period of time.
To outline the transactions of a company's owners during a given period.

Explanation

The income statement's primary function is to evaluate the profitability of a company.

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