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

The income statement is the financial statement that summarizes a company's revenues and expenses over a specific period. It provides a detailed account of how much money a company earned (revenues) and how much it spent (expenses) during a particular timeframe, typically a quarter or a year. This statement ultimately reveals the company's profitability, shown as net income or loss when revenues exceed or do not meet expenses, respectively.

By comparing revenues and expenses, the income statement helps stakeholders understand the company's operational performance and is essential for making informed decisions regarding investments, management effectiveness, and financial health. This clarity helps in assessing a company's ability to generate profit from its operations and in understanding the impact of various factors on profitability over time.

Other financial statements serve different purposes: the balance sheet provides a snapshot of assets, liabilities, and equity at a single point in time; the cash flow statement tracks cash entering and leaving the business; and the statement of equity outlines changes in equity over a period. Each serves its unique role in financial analysis, but it is the income statement that focuses specifically on revenues and expenses across a defined period.