17
QuizMultiple Choice

Study Guide and Quiz

Question 17 • S25 Introduction to Business A (Theisen)

If you want to know whether a company had a profit or a loss during a specific period of time, which financial statement would be most helpful?

Answer
A
Statement of owners' equity
B
Cash flow statement
C
Balance sheet
D
Income statement

Explanation

An income statement reports a company’s revenues and expenses over a specific period. Comparing them shows whether the company earned a profit or had a loss. The balance sheet shows financial position at a point in time, while the cash flow statement tracks cash received and spent.

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