What does the income statement reflect?
A) The cash that has flowed in and out of the company over an accounting period.
B) Revenues minus expenses over an accounting period.
C) Both of the above.
D) None of the above.

Respuesta :

Answer: B) Revenues minus expenses over an accounting period.

Explanation:

The Income statement lets the business know how much profit it made from its operations during the year.

It lists the revenue that was earned and then deducts all expenses that were incurred from that revenue including taxes and interest payment and then presents the net income/loss.

The first option refers to the Cashflow statement.