Question

The primary function of the Income Statement is to:a. Show the company's value as of a given point in timeb. Determine if the company will have enough cash to operate properlyc. Determine taxes owed or not owedd. Compare the company's assets against the company's liabilitiese. Measure the company's financial performance over a period of time

Answer 1

Answer: e. Measure the company's financial performance over a period of time

Explanation:

The Income statement shows how the company performed financially in a certain period in relation to their operating activities.

By subtracting the expenses from the revenue, the income statement shows how the company was able to put its investments and assets to good use to be able to provide value for the shareholders.

The Income statement is prepared per period so the information it shows is period specific.