Which financial statement reports a company's revenues and expenses over a specific time period?

The Income Statement is designed to provide a detailed account of a company’s performance over a specific period, typically covering revenues earned and expenses incurred. This statement allows users to evaluate how much money the company has made and how much it has spent, ultimately leading to net profit or loss for that time frame.

By presenting revenues and expenses, the Income Statement helps stakeholders, including investors and management, assess operational efficiency and profitability. This timely reporting is essential for understanding financial health and making informed decisions.

In contrast, the Balance Sheet offers a snapshot of a company’s assets, liabilities, and equity at a particular point in time, while the Cash Flow Statement tracks the movement of cash in and out of the business over a period, focusing on liquidity rather than net income. The Equity Statement summarizes changes in equity over time but does not reflect revenues and expenses directly, so it does not serve the same purpose as the Income Statement.