Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 10 - No. 42)
What is the primary purpose of the income statement?
To show a company's financial position at a specific point in time.
To report the financial performance of a company over a period of time.
To summarize a company's cash inflows and outflows over a period of time.
To show the changes in equity over a period of time.
Explanation
The income statement reports a company's profitability (revenues, expenses, gains, and losses) over a period.
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