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Over what span does the income statement report a firm's results?
AOver a period of time
BAt a single instant only
COver the life of the firm
DAt the close of every day
Answer & Solution
Correct answer: A. Over a period of time
1. The income statement summarizes revenues and expenses and shows total profit or loss over a period of time.
2. Most companies prepare monthly statements for management and quarterly and annual ones for investors, creditors and other outsiders.
3. The balance sheet is the statement fixed to a single moment, so the two answer different questions about the same firm.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 14 "Using Financial Information and Accounting", section 14.5 The Income Statement_
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