Which document reflects company revenues and expenditures during a specific period?

Study for the Business Plumbing Law Exam. Dive into essential laws and industry knowledge with multiple choice questions, offering prime hints and detailed explanations. Prepare for success!

The income statement is the document that specifically reflects a company's revenues and expenditures over a defined period, such as a quarter or a year. It details the company's performance by revealing how much money has been earned (revenues) and how much has been spent (expenses) during that timeframe, ultimately showing the net income or loss. This information is crucial for assessing the company's profitability and operational efficiency.

In contrast, other financial statements serve different purposes. The statement of cash flow focuses on the cash inflows and outflows from operating, investing, and financing activities, rather than a summary of revenues and expenditures. The balance sheet provides a snapshot of a company’s assets, liabilities, and equity at a single point in time, rather than over a period. Lastly, the statement of changes in equity tracks changes in equity from transactions with shareholders and adjustments to retained earnings but does not detail revenues and expenditures. The unique focus of the income statement on profits and losses makes it the correct document in this context.

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