balance sheet
A balance sheet reports financial information for a period of time and often states that it is prepared as of a specific date, referred to as the balance sheet date. The balance sheet reports on a company’s financial conditions, namely the values of the company’s assets, liabilities and shareholders’ equity.

Which one of the following is the financial statement that summarizes a firm’s revenue and expenses over a period?

Income statement
The correct answer is (a) Income statement. Income statement is the financial report that shows the company’s revenue and expenses during the period. At its bottom line, this reports if the company had net loss or net income.

What makes up a statement of financial performance?

Those information included revenues, expenses, and profit or loss for the period of time. Income Statement is sometimes called the statement of financial performance because this statement lets the users assess and measure the financial performance of an entity from period to period of the same entity or with competitors.

What are the expenses in a financial statement?

They are ranking from operating expenses like salary expenses, utilities, depreciation, transportation, and training expenses to tax expenses and interest expenses. Expenses here also include the costs of goods sold or the cost of rendering services that incur during the period.

Why is an income statement called a financial statement?

Income Statement is sometimes called the statement of financial performance because this statement lets the users assess and measure the financial performance of an entity from period to period of the same entity or with competitors. This statement could be present in two different formats that allow by IFRS based on an entity’s decision.

What makes up revenues on an income statement?

Revenues refer to sales of goods or services that the entity generates during the specific accounting period. The revenues that present in the income statements are the revenues from both cash sales and credit sales. In the revenues section, you could know how much the entity makes net sales for the period they are covering.