Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 24 - No. 39)

In a partnership, what is the primary purpose of an income statement?
To show the financial position at a point in time.
To summarize the changes in partners' equity.
To report revenues, expenses, and net income/loss.
To detail cash inflows and outflows.

Explanation

The income statement reports the financial performance over a period by showing revenues, expenses, and net profit or loss.

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